The Indian IT sector witnessed heavy selling, with the NIFTY IT index dropping nearly 6 percent. The index fell 2,315 points to an intraday low of 36,295. All 10 stocks in the index traded in the red.
Major companies saw sharp declines. Infosys fell almost 7 percent to Rs 1,540. TCS dropped about 6 percent. LTIMindtree lost around 6 percent, while Wipro declined more than 4 percent.
What Triggered the Fall in IT Stocks?
The weakness followed a technology selloff in the United States. The Nasdaq Composite closed 1.43 percent lower as investors reduced exposure to software and cloud stocks.
The main concern is the rapid progress in artificial intelligence tools. Investors fear that advanced AI systems may reduce demand for traditional software, consulting, and data services.
Why Is Anthropic in Focus?
A key trigger was fresh attention on Anthropic, the company behind the Claude AI models. The firm introduced new AI “agent” tools under its Claude Cowork direction.
These AI agents can connect to enterprise systems using plug ins. They can automate tasks in legal, compliance, sales, marketing, and data analysis workflows.
What Tasks Can These AI Agents Perform?
The system is designed to handle routine, document heavy work. This includes contract review, NDA screening, compliance checks, draft preparation, templated responses, and document risk flagging.
Anthropic has clarified that it does not provide legal advice. Human professionals remain responsible for final decisions.
Why Are IT Services Companies at Risk?
Investors worry that ready to use AI agents could reduce demand for high volume services. These are services that IT outsourcing firms usually bill based on manpower.
Areas seen at risk include document processing, compliance support, contract operations, and back office data services. The fear is not immediate replacement of large IT projects. The concern is gradual pressure on recurring, labor intensive work.
Was the Selling Limited to India?
No. The pressure spread globally. Nvidia and Microsoft fell nearly 3 percent each. Alphabet declined 1.2 percent, and Amazon dropped 1.8 percent.
In consulting and data services, Accenture fell 8.7 percent and IBM dropped 8.1 percent. Credit data firms like Equifax and TransUnion also saw sharp losses.
Did Earnings Add to the Pressure?
Yes. Gartner shares fell 21 percent. The company reported quarterly revenue growth of 2.2 percent year on year, but consulting revenue declined 12.8 percent. This added to worries about weak demand in consulting services.
What Is the Bigger Market Concern?
The broader worry is that AI companies are moving beyond models into full workflow products. If AI handles more routine business tasks, pricing power and margins in tech services could come under pressure.
The market reaction reflects fear of long term business model disruption, not immediate collapse. Investors are reassessing how AI adoption may reshape the global IT services industry.
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