Indian IT and global software stocks came under heavy selling pressure after US-based AI startup Anthropic announced a new set of advanced artificial intelligence tools, triggering concerns among investors about the future demand for traditional IT services.
The sell-off was driven by fears that Anthropic’s new AI agents could automate complex enterprise tasks such as coding, document analysis, compliance checks, and customer support functions. These activities form a significant part of the revenue base for Indian IT services companies, which rely heavily on labour-intensive outsourcing contracts from global clients.
Following the announcement, shares of major Indian IT firms including Infosys, Tata Consultancy Services, Wipro, HCLTech, and Tech Mahindra declined sharply. The Nifty IT index also witnessed a steep fall as investors reassessed growth prospects for the sector amid rapid advances in artificial intelligence.
Global software stocks mirrored the weakness, as markets worried that AI-powered tools could reduce spending on conventional software development and IT services worldwide. Analysts noted that companies offering automated AI solutions could disrupt existing business models by delivering faster and cheaper alternatives to human-driven processes.
Market experts said the reaction reflects growing uncertainty over how quickly AI adoption could impact revenue visibility for IT firms. While some industry leaders have described the sell-off as an overreaction, investors remain cautious until there is more clarity on how traditional IT companies will adapt to the accelerating shift towards AI-led solutions.
