India's leading software exporters are grappling with a staggering $200 billion decline in aggregate market value, primarily driven by the disruptive impact of artificial intelligence (AI) technology. The market cap of these companies peaked at $413 billion on December 13, 2024, but has since fallen to $227 billion as of May 14, 2026, marking a 45% decrease. In 2026 alone, the sector has lost $98.7 billion, or 30% of its market cap. Notably, Tata Consultancy Services (TCS) and Wipro recorded the sharpest losses, exceeding 50%, with declines of $87 billion and $21 billion respectively. In contrast, Tech Mahindra and Persistent Systems fared better, with losses of 25% and 30%. This erosion in market cap is the largest absolute loss for the Indian IT sector, which has historically faced volatility during periods of geopolitical uncertainty and technological change. Previous downturns include a 75% drop during the dot-com bubble burst in 2000 and 50-70% losses during the 2008 subprime crisis.