New Delhi — A sharp selloff in technology stocks rattled Indian markets on Wednesday after US AI startup Anthropic unveiled a powerful new suite of automation tools, reigniting fears that artificial intelligence could disrupt traditional IT business models.
The Nifty IT index fell nearly 6%, erasing around ₹2 trillion in market capitalization in a single session. It marked the sector’s steepest decline since the Covid-era crash of March 2020, when the index plunged 9.6%. By the end of trading, the total market value of listed IT firms slipped below ₹29.85 trillion.
The decline mirrored a sudden drop in US software stocks after Anthropic announced 11 new plugins designed to automate a wide range of professional tasks.
What is Anthropic’s new tool?
At the center of the market reaction is Claude Cowork, Anthropic’s latest AI system. Unlike a conventional chatbot, the tool functions as a digital coworker capable of performing real computer tasks.
According to company descriptions, the system can:
- Read and edit files
- Create new documents
- Rename and organize folders
- Convert screenshots into spreadsheets
- Turn rough notes into structured reports or drafts
The tool is designed for writers, analysts, journalists, students and office professionals. Anthropic has also introduced Claude Legal and Data, a specialized version aimed at lawyers, corporations and analysts handling large legal and commercial documents.
Why investors are worried
Although Anthropic has emphasized that the software is intended to assist professionals rather than replace them, its ability to process large volumes of paperwork within minutes has intensified concerns across legal, financial and corporate service industries.
Investors fear that increasingly capable AI systems could automate large portions of back-office work — a core revenue stream for outsourcing firms that serve US and European clients.
Indian IT stocks under pressure
Major Indian IT firms moved in line with the global selloff. Shares of Infosys, TCS, HCLTech, Tech Mahindra and Wipro fell as much as 6%. Infosys and Mphasis were among the worst hit, dropping more than 7%. LTIMindtree, Coforge and several mid-tier IT companies also recorded declines of 5–6%.
The combined market value of Nifty IT constituents shrank by roughly ₹1.9 trillion, underscoring investor anxiety about the long-term impact of AI-driven automation.
Broader implications
Market participants say the selloff reflects deeper concerns about pricing power and profitability in the technology services sector. As AI tools grow more capable, companies may face pressure to defend margins while adapting their business models.
For India’s outsourcing-heavy IT industry, the fear is particularly acute: automation of legal, analytics and administrative workflows could reshape the economics of global back-office services.
Whether the reaction proves temporary or signals a structural shift remains uncertain, but Wednesday’s trading made one thing clear — AI disruption is no longer theoretical for investors.
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