India's technology sector faces mounting pressure as AI disruption fears drive valuations to decadal lows. Market analysts report that order flows remain surprisingly strong despite the broader selloff, suggesting underlying business fundamentals may be more resilient than sentiment indicates.

MRG, a prominent market research group, highlighted that current valuations represent rare buying opportunities for contrarian investors. The sharp decline follows concerns about automation replacing traditional IT services, though some argue these fears are overblown given India's expanding digital economy and growing demand for AI integration services.

Despite the market turmoil, industry experts note that India's tech companies are well-positioned to adapt to the AI transition. Many firms have already begun investing heavily in AI capabilities and retraining workforces. The current weakness may ultimately prove a temporary setback rather than a structural decline, particularly as global companies continue seeking cost-effective technology solutions from India's skilled workforce.