Why IT Stocks Are Falling Today: Infosys, Wipro, TCS, HCLTech & More Shares Slide After Anthropic AI Tool Buzz

Indian IT stocks came under heavy selling pressure on Wednesday, February 4, as concerns over artificial intelligence-driven disruption triggered a sharp global sell-off in technology shares, dragging Indian benchmarks lower in early trade. The decline followed overnight weakness in US tech stocks and intensified after fresh developments in the global AI space rattled investor confidence across software and IT services companies.

IT Stocks Are Falling! Nifty IT Drops Over 6%; Know Reasons

The Nifty IT index slid over 6% to around 36,393.70 in early trading hours, marking one of its steepest single-day declines in recent months. The fall erased a large part of the gains seen just a day earlier, when IT stocks had rallied on optimism surrounding India's trade deal with the US.

Infosys Share Price Today

Indian IT heavyweights bore the brunt of the sell-off. Infosys shares plunged sharply, trading at Rs 1,536.90 on the NSE by around 10:46 am, down Rs 119.10 or 7.19% for the day.

TCS Share Price Today

Tata Consultancy Services (TCS) also saw significant pressure, falling to Rs 3,044.20 by 10:47 am, a decline of Rs 181.10 or 5.61%. TCS opened the session at Rs 3,120 and touched a low of Rs 3,031.20 as selling intensified through the morning.

LTIMindtree Share Price Today

Mid-tier IT stocks mirrored the weakness in frontline names. LTIMindtree slipped 6.83% to Rs 5,631 by around 10:49 am, after opening at Rs 5,800 and hitting an intraday low of Rs 5,581.

Tech Mahindra Share Price Today

Tech Mahindra declined 6.04% to Rs 1,612.80 by 10:50 am, while HCL Technologies fell 5% to Rs 1,610.50 by 10:51 am, after moving between a high of Rs 1,645 and a low of Rs 1,586 during the session.

Japanese IT Stocks TIS, Trend Micro, NS Solutions Lead Asia Sell-off

In Asia, Japanese software firms led regional declines. TIS, a major Japanese IT services provider and systems integrator, plunged more than 15%, while cybersecurity firm Trend Micro fell over 8%. NS Solutions declined nearly 7%, reflecting widespread investor unease across the sector.

China Tech Stocks Kingdee, Tencent, Alibaba and Baidu Slide

Chinese technology stocks were also hit hard. Shares of Kingdee International Software dropped more than 15%, while cloud major Tencent slipped 3.27%. Alibaba lost over 1%, and Baidu was down more than 2%, underscoring the regional nature of the sell-off as investors reassessed the long-term implications of AI automation.

"The recent sell-off in Indian IT stocks is driven by weak global tech sentiment and domestic macro pressures. A sharp fall in U.S. technology shares, following concerns that advanced AI tools from firms like Anthropic could automate tasks traditionally outsourced to Indian IT services, has raised doubts about the sustainability of the human-intensive business model and triggered risk-off selling," said Mr. Pranay Aggarwal, Director and CEO of Stoxkart.

Anthropic's New AI Automation Sparks 'SaaSpocalypse' Fears, Triggers Global Tech Sell-Off

The immediate trigger for the global sell-off was the launch of a new AI automation system by US-based AI firm Anthropic as per CNBC-TV18 report. The company revealed expanded capabilities of its Claude "Cowork" agents, designed to automate tasks across legal, sales, marketing and data roles.

These functions are widely seen as core revenue drivers for software firms and IT services providers worldwide. Analysts described the market reaction as a potential "SaaSpocalypse", reflecting growing anxiety that AI could replace, rather than merely support, existing software and outsourcing work.

IT Stocks Down: Is It Buying Opportunity?

''Sharp correction in IT heavyweights stocks like TCS, Infosys, Wipro, etc validates a structural shift: generic service models relying on headcount are facing an existential test as agentic AI automates volume-based tasks. However, we view this as a bifurcation opportunity and are actively allocating capital to specialized IT firms; those serve niche verticals like healthcare giants and global OEMs," Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager at 129 Wealth Fund.

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