share marketImage Credit source: ChatGPT
After the launch of Anthropic’s workplace productivity tools, there was a huge fall in the shares of big Indian companies like Infosys, Wipro, HCL Tech, TCS this morning. These shares fell by up to 7% and there was a total loss of about Rs 2 lakh crore in market value.
The biggest decline was recorded in the shares of Infosys and Mphasis and they fell by more than 7%. Whereas shares of LTIMindtree, Wipro, Coforge, TCS, Mphasis and HCL Tech fell by 5-6%. Wipro shares were trading down about 4%. The total market value of shares of Nifty IT index decreased to about Rs 30 lakh crore. This fear spread to the US market Wall Street, where the Nasdaq index filled with tech stocks fell 1.4% and the total market value of this sector decreased by about $ 300 billion.
Why did the decline occur?
This sharp decline came after the announcement by American artificial intelligence startup Anthropic, which has launched a new tool specially designed for the legal teams of companies. Anthropic, a cloud-based chatbot maker, says that this tool can do many legal tasks automatically. This includes work like examining contracts, sorting out non-disclosure agreements, work related to rules, preparing legal documents and giving definite answers.
This new development has worsened the already negative environment surrounding software stocks. Investors are now more worried that the widespread use of AI will increase competition and put pressure on companies’ profits. Market experts fear that as AI tools become more powerful, it may become difficult for tech companies to maintain their prices and maintain profits.
Impact visible on American markets too
Meanwhile, weakness was seen in tech stocks in the American markets also. The S&P 500 index fell 0.84% to 6,917.81, while the Nasdaq fell 1.43% to 23,255.19. There was not much change in the Dow Jones Industrial Average and it fell 0.34% to close at 49,240.99. Talking about individual stocks, big companies of AI sector Nvidia and Microsoft fell by about 3%. Alphabet’s shares fell 1.2% ahead of Wednesday’s results, while Amazon’s shares fell 1.8% ahead of Thursday’s results.
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