AI Jitters From Wall Street to Dalal Street Rattle Tech Counters: TCS, Infosys, Wipro, HCL Tech Bear the Brunt
The IT stock market decline began on February 4 when Dalal Street’s technology party came to a halt after US technology stocks witnessed a major drop. The market declined as investors reacted to artificial intelligence, which heightened anxiety about its potential to become both an advanced technological partner and a competing force. The selloff deepened as Tata Consultancy Services, Infosys, Wipro, and HCL Tech saw their stock prices fall, erasing billions in market value and pushing the Nifty IT index down by 6 percent. Traders began to re-evaluate the future of India’s IT services model as artificial intelligence technology continued to advance at a rapid pace.
Dalal Street joined the anxiety parade that began on Wall Street, where software companies faced revenue concerns from automation. The selloff may have shown numerical losses, but it truly reflected investor worries about rapid technological advancements transforming the tech industry. Investors grasped the key message: artificial intelligence is introducing new challenges that could disrupt IT companies’ operations.
Nifty IT Bleeds as Heavyweights Face Sharp Selloff
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Infosys: Shares plunged 6% to their lowest level in nearly three months on the NSE.
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TCS: The IT bellwether fell 6% in intraday trade.
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Wipro: Stock slipped 6.7%, extending the sector-wide selloff.
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HCL Tech: Declined 6.44% amid heavy selling pressure.
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Nifty IT Index: All constituents traded in the red, dragging the index down 5.99%.
Why Are Investors Worried About Anthropic AI – Creating a Selloff in the IT Sector
Investors become anxious about Anthropic because artificial intelligence now functions as an essential technology that competes with information technology services. The company introduced its latest plug-in extensions for the Claude Cowork agent, which now permits autonomous execution of legal and sales and marketing and data analysis operations. Claude Agents can now execute functions which previously required Salesforce or ServiceNow platforms to operate, thereby removing human workers from handling those responsibilities. The situation created panic because Indian IT companies, which provide services to American customers, would experience revenue loss because of the AI technology.
Infosys and Wipro share prices dropped rapidly because traders started selling their stock, which resulted in a market downturn across the entire sector. The big question looms: will AI remain a trusty assistant or become the ultimate competitor, rewriting the rules of the global IT services game? Investors are watching every move closely.
Global & Indian IT Selloff: From Wall Street to Dalal Street
Dalal Street IT Stocks Crash (Feb 4, 2026):
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Heavyweight Declines:
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Infosys shares plunged 6% to a three-month low.
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TCS dropped 6% intraday.
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Wipro slipped 6.7%; HCL Tech fell 6.44%.
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Index Impact: Nifty IT index tumbled 5.99% as all constituents traded in red.
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Investor Concern: The selloff reflects worries that AI, particularly Anthropic’s Claude Cowork agent, could displace traditional IT services and reduce revenue from US enterprise clients.
Global Tech Rout Adds Pressure:
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US Tech Stocks:
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Gartner down 21%; Nvidia, Meta, Microsoft fell >2%; Oracle dropped 3.4%.
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Asia-Pacific Tech Stocks:
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Xero plunged 15% in Sydney (steepest since March 2020).
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Kingsoft Cloud (Hong Kong) and Nomura Research Institute (Japan) dropped at least 6% each.
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Market Sentiment: Global tech declines intensified selling pressure on IT stocks worldwide, reflecting AI-driven disruption fears.
‘SaaSpocalypse’ Fear Grips Markets, What Is it?
The entire tech industry is experiencing panic while investors show anxiety because a global brokerage reports that the market crash has reached a complete “SaaSpocalypse” status, which means software-as-a-service stocks face an existential crisis. The culprit? Artificial intelligence, which now functions as a productivity tool, has evolved into a potential competitor against conventional IT and software solutions. All markets are tumbling because AI technologies from Infosys to TCS and Wipro to HCL use Anthropic’s Claude Cowork agent to replace human workers. People want to know whether AI will help maintain revenue streams or destroy them. Traders are monitoring every market movement because today’s market operates with software that possesses actual destructive power.
(With Inputs from Reuters)
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