IT Stocks Slide as Global Tech Shares React to AI-Driven Market Volatility

Indian IT stocks traded sharply lower on Wednesday tracking global peers as worries grew that artificial intelligence will increase competition in the space.

Nifty IT index dropped over 6 percent to trade at 36,393.70 in opening deals Wednesday.

Persistent Systems, LTI Mindtree, Coforge and infosys shares fall over 6 percent each, while Mphasis, Tech Mahindra, Tata Consultancy Services (TCS) and HCL Technologies declined nearly 6 percent each.

Wipro declined over 4 percent each. Nifty IT index is currently the top loser sectoral index on the markets. IT stocks are tanking lead the it stocks crash India on benchmark indices Sensex and Nifty, as seen at 9.20 am on Wednesday.

Shares of Anthropic jumped 10 percent in extended trading after the company announced that it had launched plug-ins for its Claude Cowork agent last week. The plug-ins can automate workflows across legal, sales and marketing, and data analytics functions.

This development has fuelled concerns over an imminent AI-driven disruption of the data and professional services industry which were hitherto viewed as some of the biggest beneficiaries of the AI revolution, traders and analysts said.

“In what could be a near-term sign of competitive intensity heating up in the AI space, Anthropic today announced new capabilities for its Cowork product targeted at the legal industry,” Morgan Stanley analysts including Toni Kaplan said in a note, according to Thomson Reuters reported by Bloomberg.

“We view this as a sign of competitive intensity heating up in the AI space, and thus a negative,” they added.