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IT stocks crash: Indian IT stocks, including tech behemoths like Tata Consultancy Services, Infosys and Wipro, fell like ninepins in the early morning trade on Wednesday, February 4, tracking an overnight decline in tech stocks on Wall Street amid concerns that artificial intelligence could intensify competition.

The recently updated artificial intelligence (AI) chatbot by Anthropic is being seen as the main culprit behind the tech selloff, as investors worry it could eat into the core business of IT services firms.

Infosys share price crashed 6% to its lowest level in nearly three months on the NSE. IT bellwether TCS shares, too, lost 6% in intraday deals today. Wipro stock was down 6.7% and HCL Tech 6.44%. All IT index constituents remained in the red, dragging the Nifty IT index lower by 5.99%.

AI company Anthropic has released new plug-ins for its Claude Cowork agent that can automatically handle tasks in areas like law, sales, marketing, and data analysis, according to Reuters. This development has raised concerns of AI displacement, triggering a selloff in IT stocks.

The selloff was visible across the globe as tech stocks from the US, Europe, to Asia tumbled.

Most large-cap US technology stocks ended Tuesday's session lower. Gartner ended the day with cuts of 21%, while others like Nvidia, Meta and Microsoft lost over 2% each, and Oracle shed 3.4%.

In Asian trading, cloud-based accounting software maker Xero slid as much as 15% in Sydney trading, the most since March 2020. Hong Kong-listed Kingsoft Cloud Holdings Ltd. and Japan’s Nomura Research Institute Ltd. dropped at least 6% each, a Bloomberg report stated.

More to come…

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