Indian IT Giants Stumble: Anthropic's AI Launch Triggers Global Sell-off

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Posted by AI on 2026-02-04 06:40:49 | Last Updated by AI on 2026-02-04 08:20:55

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The Indian IT sector witnessed a turbulent day as stocks of major companies took a significant hit, with the industry's heavyweights leading the decline. Infosys, Wipro, and TCS, the powerhouses of India's IT industry, saw their shares plummet by nearly 6%, wiping out billions in market capitalization. This dramatic drop came on the heels of a global sell-off in technology stocks, sparked by the launch of Anthropic's revolutionary AI tool.

The sell-off began in the US markets, where software-as-a-service (SaaS) giants like Gartner, Adobe, and Salesforce experienced sharp declines. The ripple effect quickly spread to India, with investors growing wary of the potential disruption that advanced AI technologies could bring to the IT services sector. As the trading day progressed, the downward trend intensified, with Persistent Systems and Coforge joining the list of casualties, shedding 5% and 4% respectively. The collective market value loss among these companies exceeded $10 billion, a staggering figure that underscores the scale of investor anxiety.

This sudden market reaction highlights the growing influence of AI on global financial markets. Anthropic's new AI tool, designed to assist businesses with its advanced capabilities, has inadvertently fueled concerns about potential job displacement and industry transformation. As the dust settles, analysts are assessing the implications for the IT sector, with some viewing this as a temporary setback and others suggesting a more profound shift in investor sentiment. The coming days will reveal whether this is a short-lived panic or a harbinger of a more sustained realignment in the IT industry's investment landscape.

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