IT rebound lifts Indian shares after Tuesday's selloff

Indian shares advanced on Wednesday, with IT firms leading a broad-based rebound after fears of an AI-led disruption led to a selloff in the previous session. The Nifty 50 (.NSEI), opens new tab rose 0.84% to 25,638.45 and the BSE Sensex (.BSESN), opens new tab added 0.83% to 82,913.93 as of 10:20 a.m. IST. The indexes had fallen more than 1% on Tuesday. Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here. All 16 major sectors rose in early trade, with the IT index (.NIFTYIT), opens new tab gaining 2.7% after a 4.7% fall a day earlier. Advertisement · Scroll to continue Rapid developments in AI are spurring questions about the long-term outlook for India's technology sector, even as executives frame disruption as an opportunity. "The recent drawdown in India's stock benchmarks is largely driven by its IT companies," said Saion Mukherjee, analyst at Nomura, adding that the brokerage is "not that bearish on the outlook and terms the concerns in the sector 'premature and overdone'." IT shares carry roughly an 11% weightage in the blue-chip index, the second-highest. Wall Street equities rebounded after Anthropic unveiled 10 new ways for business customers to use its AI plugins, reviving enthusiasm that AI would boost business profitability across certain sectors. Asian markets (.MIAPJ0000PUS), opens new tab gained 1.8%.