New Delhi: The entry of Artificial Intelligence (AI) has badly affected the IT giants. After AI startup Anthropic launched its new model, investors resorted to selling in global tech giants such as Cognizant and Accenture. The impact was also seen in the Indian stock market. On 18 February 18 (Wednesday), the shares of Indian IT companies declined due to fear of AI.
After falling last week, the IT stocks had moved north in the last two sessions, however, that rally came to a halt today. The Nifty IT index dropped about 2.5% to around 32,265. Last week, the Nifty IT index fell more than 8%, which was its worst performance in 11 months.
Persistent Systems share price declined 3 per cent, falling to Rs 5,462 apiece. Meanwhile, IT giant Infosys went down 3% to Rs 1,345. Tech Mahindra, LTIMindtree and Coforge declined more than 2%. HCL Technologies, Wipro, Mphasis, and Tata Consultancy Services also depreciated around 2%.
Why IT stocks are falling?
AI startup Anthropic launched its new model Claude Sonnet 4.6. The firm has claimed that the model is more capable in coding, long-context reasoning, and agent planning.
Experts are of the view that the launch resulted in investors selling tech shares. Investors are concerned and worried that AI could intensify competition among software companies. Analysts are also saying that uncertainty and confusion regarding AI may keep IT stocks volatile in the near term.
Importantly, Infosys has sealed a strategic partnership with Anthropic, under which the Claude model will be integrated into the Infosys Topaz AI platform. The Infosys recorded a jump on Tuesday. However, the shares declined today as uncertainty remains in the market about rising competition from AI.
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