Why Infosys, TCS and Other IT Stocks Are Falling Together as AI Panic Hits Global Tech

ଖେଳ

ରୋହିତ ଶର୍ମାଙ୍କ ଅବସର ନେଇ ବଡ଼ ଅପଡେଟ୍: ଗୁଜବକୁ ଖଣ୍ଡନ...

July 25, 2026

ଭାରତରେ ହେବ କି ଐତିହାସିକ ଆଶେଜ୍ ଟେଷ୍ଟ? କ୍ରିକେଟ୍ ଅଷ୍ଟ୍ରେଲିଆ...

July 24, 2026

ଅଶ୍ୱିନଙ୍କ ମନ୍ତବ୍ୟରେ ପୁଣି ଚର୍ଚ୍ଚାରେ ସୁନୀଲ ନାରିନଙ୍କ ବୋଲିଂ ଆକ୍ସନ୍,...

July 24, 2026

ଗ୍ଲାସଗୋ କମନୱେଲ୍ଥ ଗେମ୍ସ ୨୦୨୬ ଆରମ୍ଭ: ଭାରତୀୟ ଦଳକୁ ଶୁଭେଚ୍ଛା...

July 24, 2026

ଅପରାଧ

ଖାଦ୍ୟରେ ନିଦ ବଟିକା ମିଶାଇ କୋଟିଏରୁ ଅଧିକ ଟଙ୍କା ଲୁଟ୍:...

July 26, 2026

ନବରଙ୍ଗପୁରରେ ଅଷ୍ଟମ ଶ୍ରେଣୀ ଛାତ୍ରୀଙ୍କ ମୃତଦେହ ଗଛରେ ଝୁଲନ୍ତା ଅବସ୍ଥାରେ...

July 26, 2026

ମୟୂରଭଞ୍ଜରେ ଗହଣା ବ୍ୟବସାୟୀଙ୍କୁ ଗୁଳି ଫୁଟାଇ ଲୁଟ୍: ସୁନା, ରୂପା...

July 26, 2026

ବାଲେଶ୍ୱରର ମଙ୍ଗଳା ମନ୍ଦିରରୁ ୪ ଲକ୍ଷ ଟଙ୍କାର ସୁନା ଅଳଙ୍କାର...

July 25, 2026

Why Infosys, TCS and Other IT Stocks Are Falling Together as AI Panic Hits Global Tech

Indian IT stocks plunged sharply after fears of AI-driven disruption sparked a global tech sell-off in the US. New enterprise AI tools raised concerns about outsourcing demand and job security, dragging down Infosys, TCS, Wipro and the broader Nifty IT index.

Published by Somesh | February 04, 2026

Indian IT stocks witnessed a sharp and synchronized sell-off on Wednesday as global technology markets reeled from growing fears around artificial intelligence disrupting traditional outsourcing models. Shares of Infosys, TCS, LTIM, HCLTech and Tech Mahindra fell between 5% and 8% in early trade, while Wipro slipped nearly 5%. The Nifty IT index crashed close to 7%, making it one of the worst-performing sectoral indices of the day.

The trigger came from the United States, where markets reacted sharply to the launch of new enterprise AI tools by Anthropic. The AI company unveiled systems capable of handling document reviews, compliance checks, data analysis and back-office processing—tasks that form the backbone of India’s IT outsourcing industry.

Following the announcement, software and outsourcing stocks in the US came under heavy selling pressure. American Depositary Receipts (ADRs) of Infosys and Wipro declined sharply overnight, setting the tone for Indian markets at the open.

The sell-off hit at a time when the Indian IT sector was already under strain. Deal ramp-ups have been slow, discretionary spending by US and European clients remains cautious, and several large contracts are still in transition. Elevated valuations and weak demand visibility made the sector vulnerable to a global shock.

Beyond stock prices, the market reaction has intensified concerns about the future of IT jobs. Global tech companies are increasingly cutting costs and relying on automation. With AI now capable of handling high-volume routine work, investors fear that traditional IT services roles could face pressure sooner than expected.

However, experts note that while low-end outsourcing work may decline, new opportunities are emerging. Global Capability Centres in India are expanding rapidly, hiring talent in AI engineering, cybersecurity, cloud computing and product development. The challenge ahead lies in rapid upskilling and transitioning to higher-value, AI-driven services.

The day’s sharp correction was not just a market reaction—it highlighted how AI is beginning to reshape India’s IT business model, workforce expectations and long-term growth narrative.