The decline in IT shares for 5 consecutive days stopped today. Because there was a recovery in the shares of major technology companies of the country. Shares of IT companies like Infosys, Wipro and TCS rose up to 5% on Wednesday after Anthropic signed several partnerships with SaaS firms. This reduced the concern about the possible impact of AI. This increase has been seen after five days of heavy selling.
Anthropic held its Enterprise Agents event and announced several new agreements, allaying investors’ fears that AI could cause major disruption in the software sector. The company also introduced updates to its cloud platform, which will allow business productivity tools to integrate with a number of enterprise applications, including Salesforce’s Slack, Intuit, DocuSign, LegalZoom, FactSet, and Google’s Gmail.
Anthropic also said that organizations will be able to deploy it as per their needs for tasks like financial analysis, engineering and human resources. Overnight, the Dow Jones Industrial Average rose 370 points, recovering about 50% of Monday’s losses. Whereas S&P 500 and Nasdaq Composite gained 0.7% and 1.1%.
There was a sale in shares
Stocks like Tata Consultancy Services, Infosys and HCL Technologies came under heavy selling pressure in the last session after Anthropic said its cloud code tool could help retrofit legacy systems running COBOL. This selling pulled NIFTY IT down sharply and the index closed down by 4.74%. The NIFTY IT index has fallen more than 20% in February alone, its biggest monthly decline since the Global Financial Crisis.
Expectations of a rebound have also increased because many IT stocks have now reached oversold levels. In the first two months of the year alone, 7 out of 10 stocks of the NIFTY IT index have fallen by 20% or more. After a sharp fall, NIFTY IT is now trading at its lowest level in eight years against NIFTY 500, which has drawn the attention of investors looking for cheap prices towards this sector.
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