IT stock crash wipes out Rs 1.2 lakh crore for LIC & mutual funds in bloodbath not seen since 2008

India's top financial institutions, LIC and mutual funds, have suffered significant losses as the Nifty IT index plunged 21%. Fears of AI disrupting the traditional IT labour-arbitrage model are driving this downturn, with analysts questioning the long-term growth prospects of major IT firms. Investors face a dilemma between beaten-down valuations and uncertain future fundamentals.