OpenAI GPT‑6 Astra Triggers Rs 1.2 Lakh Crore Loss in Indian IT Sector

Investors lost Rs 1.2 lakh crore in three days after OpenAI launched GPT‑6 Astra, a move that sparked a sector‑wide sell‑off across large‑cap and mid‑cap Indian IT companies, prompting panic among both retail and institutional holders.

CLSA downgraded the rating of Infosys, TCS, Tech Mahindra, Wipro and Mphasis, issuing lower target prices and warning that the rapid advance of AI models like GPT‑6 Astra could compress profit margins and reduce earnings outlook.

Citi announced it holds zero buy calls on all eleven major Indian IT stocks, citing pricing pressure, uncertain demand for traditional services and the broader market volatility triggered by the AI‑driven sell‑off.

Infosys and TCS jumped up to 5% on a short‑covering bounce, yet the Nifty IT index stayed below its 52‑week low, sliding more than 2% as the broader sell‑off persisted across the sector.