Infosys, TCS, HCL Tech and other IT stocks fall up to 7% as Anthropic AI sparks global tech selloff
- 4th February 2026
- 01:00 PM
- 3 min read
Summary
Indian IT stocks slumped sharply on Wednesday after new AI automation tools launched by US-based startup Anthropic triggered a global technology selloff. Fears that AI could disrupt traditional software and outsourcing models weighed on investor sentiment, dragging the Nifty IT index down by nearly 7%.Mumbai | February 4
Indian information technology stocks came under heavy selling pressure on Tuesday, with frontline names such as Infosys, Tata Consultancy Services and Wipro falling as much as 7% in early trade. The decline mirrored a sharp overnight selloff in global technology stocks after fresh concerns emerged around artificial intelligence-led disruption following new automation tools launched by US-based startup Anthropic.
The Nifty IT index fell nearly 7% in the morning session, making it the worst-performing sector on the benchmarks. Heavyweight IT stocks also led losses on the Sensex and Nifty, weighing on broader market sentiment.
Why IT stocks are falling today
The selloff was triggered by the launch of new AI automation tools and plug-ins by US-based artificial intelligence startup Anthropic. The company recently rolled out enhanced capabilities for its “Claude Cowork” agent, designed to automate complex tasks across legal, sales, marketing and data analysis— areas traditionally serviced by enterprise software platforms and IT services firms.
Investors fear these tools could directly compete with core software products and outsourcing-led service models, potentially reducing billable hours and compressing margins for large IT companies. The developments have heightened concerns that AI adoption could alter client spending patterns faster than previously expected.
What is Anthropic AI and why markets are worried
Anthropic is a US-based AI company best known for its Claude family of models. Last week, it introduced new plug-ins and extensions for its Claude Cowork agent, enabling automation across legal, sales, marketing, compliance and data analysis workflows.
These are functions traditionally handled by licensed enterprise software or outsourced professional services. Analysts said the ability of AI tools to directly execute such tasks has intensified concerns about faster-than-expected disruption across the software and IT services ecosystem.
Global tech selloff spills into India
The announcement triggered a sharp selloff in US technology stocks overnight. The tech-heavy Nasdaq Composite index fell more than 1.4%, wiping out nearly $300 billion in market capitalisation, according to market data.
Shares of major global technology firms including Nvidia, Microsoft, Alphabet and Amazon ended lower, reflecting broader worries around AI-driven competition and pressure on future earnings visibility.
Given the Indian IT sector’s heavy exposure to US and European clients, the negative global cues quickly spilled over into domestic markets.
Heavy losses across Indian IT stocks
Back home, Infosys shares fell over 7%, while TCS declined close to 6% in early deals. Persistent Systems, LTIMindtree and Coforge dropped nearly 7% each. Mphasis and Tech Mahindra were down more than 6%.
Wipro slipped around 4%, while HCL Technologies fell nearly 5%. All ten constituents of the Nifty IT index were trading in the red. Shares of Info Edge, the parent company of Naukri.com, also declined about 6%, reflecting broader concerns around technology-led job displacement.
ADRs and valuations add to pressure
Weakness was also visible in overseas listings, with Infosys and Wipro ADRs falling over 5% overnight. Analysts noted that relatively elevated valuations left Indian IT stocks vulnerable to sharp risk-off moves amid global uncertainty.
What lies ahead
While artificial intelligence remains a long-term opportunity for technology companies, recent developments have increased near-term uncertainty around pricing power and demand visibility. Markets are likely to remain sensitive to further AI-related announcements and global technology cues.
For more market related information follow PL Capital.
