Indian IT stocks crashed sharply after Anthropic announced new AI tools, sparking fears of AI-driven disruption in the global software services industry. Shares of major firms like Infosys, TCS, Wipro, and HCL Tech plunged up to 7%, dragging the Nifty IT index down and erasing over Rs 1.9 lakh crore in market value.
Anthropic’s AI Tools Triggering the Selloff
Anthropic, the AI startup founded by ex-OpenAI executives, launched Claude Cowork plug-ins that automate tasks in legal, sales, marketing, data analysis, and more. The legal-focused tool reviews contracts, handles NDAs, ensures compliance, drafts briefs, and generates responses—tasks traditionally outsourced to IT staffing firms. Investors worry these open-source offerings could erode demand for Indian IT services, which rely heavily on low-cost labor for such work.
Impact on Key Indian IT Stocks
Infosys shares dropped 4.5-7%, hitting Rs 1,580, while TCS fell 3-6% to Rs 3,122. Wipro, HCL Tech, LTIMindtree, and Tech Mahindra saw declines of 4-6%, mirroring overnight ADR losses and a global software rout worth $285 billion. This marks the worst day for Nifty IT since May 2022, fueled by AI competition fears amid high valuations.
Broader Market and AI Disruption Fears
The selloff spread globally, with US software stocks down 6% and European firms like RELX and Wolters Kluwer hitting lows. Analysts note AI tools like Claude Cowork threaten staffing-intensive models, pressuring margins and pricing power for Indian exporters facing US slowdowns. While IT firms invest in AI, rapid adoption by clients like corporates raises job loss and revenue risks in 2026.
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