Transformer by Mint: AI’s impacts on Sensex to Saregama

Subscribe to enjoy similar stories. BENGALURU: As automation seeps further into workflows across industries, India’s largest IT services companies are feeling the pressure, not just on revenue, but also in their standing among the country’s corporate elite. Simply put, four of India’s largest IT services firms—Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, and Tech Mahindra Ltd—once held a “villa" in the BSE Sensex.

But as automation tools ate into their domain, they have been forced into smaller accommodations. A Mint analysis shows that four of the country’s five largest IT services companies, which once made up 19% of the benchmark index, now account for just over 11%, the lowest in 18 years. My colleague Dipali Banka and I bring you the details here.

Incidentally, IT stocks’ share in the BSE Sensex has been declining since the launch of ChatGPT in November 2022. Less than a week after the Ministry of Communications mandated that companies pre-install the Sanchar Saathi app, global phone giants Apple, Samsung, and Google pushed back. While fierce competitors in India’s $50 billion smartphone market, the three stood united.

Shouvik Das reported that all three were considering filing representations to the government, calling the directive to pre-install a government app a first—and “odd"—incident. The issue arose after experts raised concerns about surveillance and privacy, as the app includes cybersecurity and privacy features. The government, however, said the app’s aim was to blacklist smartphones involved in mobile-related frauds.