Feb 6 (Reuters) - Indian shares fell on Friday, after the central bank kept rates unchanged as expected, while a global selloff in technology stocks intensified on concerns over AI-led disruption, dragging domestic IT stocks.

The Nifty 50 was down 0.53% at 25,507.2, while the BSE Sensex shed 0.43% to 82,959, as of 10:31 a.m. IST. They were down 0.4% ahead of the policy decision.

The Reserve Bank of India kept the key repo rate unchanged at 5.25%, citing benign inflation and a stable growth outlook, while acknowledging that external headwinds have intensified since the December 2025 meeting.

"The decision reflects RBI's cautious approach amid mixed inflation signals, global uncertainties, currency volatility, even as recent trade deals with the U.S. and European Union have boosted export prospects," said Abhishek Goenka, founder and chief investment officer of wealth platform Billionz.

All 16 major sectors logged losses. The broader small-caps and mid-caps fell 1.5% and 1%, respectively.

The IT index fell 1.8%, tracking a global technology sell-off after recent artificial intelligence updates from U.S. firm Anthropic stoked fears of disruption across the sector.

Other global markets tumbled overnight, while Asian markets were down 1% on the day, dragged by technology stocks.

While India does not have pure-play AI-linked companies, rapid advances in AI could hurt the application services segment, which accounts for 40%-70% of revenue, weighing on earnings growth of domestic IT firms, according to multiple brokerages.

The IT index is down about 6.5% this week, on course to register its steepest weekly drop in four months.

Among individual stocks, Nykaa rose 4.6% after posting a net profit that more than doubled in the December quarter on a surge in demand for skincare and makeup products.

Life Insurance Corporation of India rose 7.2% after reporting a higher third-quarter profit, helped by improved demand for insurance after the government's tax cuts.

(Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Sonia Cheema and Rashmi Aich)

By Bharath Rajeswaran and Vivek Kumar M