Equity benchmarks Sensex and Nifty opened in the red in early trade on Friday due to rising AI pressure hampering the IT sector.
The BSE Sensex declined by 250 points, while Nifty fell to 25,400 in early trade.
On Friday, Capillary Technologies India reportedly lost 35 per cent of its valuation after having hit a peak three months ago.
The stock has fallen by over 15 per cent since February 6, when the company announced its December quarter results.
The firm, which assists global investors to enhance their engagement and loyalty programmes through its software-as-a-service (SaaS) platform, is grappling with concerns over potential revenue and profit pressure as advances in artificial intelligence (AI) models intensify competition.
Meanwhile, India’s weight in the MSCI Emerging Markets Index has slipped to fourth spot from its earlier strong rank of second, which it maintained over the past year, as investor flows shifted toward AI and semiconductor-driven firms in China, followed by Taiwan and South Korea.
After peaking at close to 21 per cent around September 2024, India’s MSCI weight fell to below 14 per cent by January 2026.
Before that, the country’s weight in the MSCI EM Index was about 9 per cent. China currently maintains the largest weight in the index at around 26.58 per cent, followed by semi-independent Taiwan at 21.04 per cent, while South Korea remains in third place with 15.65 per cent.
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