Kamal Ghorui
Tech shares continued to trade in red on Friday, extending losses as fears of disruption from artificial intelligence and fading hopes of an early interest rate cut by the US Federal Reserve continued to weigh down investor sentiment. At 9:50 am, the Nifty IT index slumped 4.59%, or 1,520 points, to trade at 31,639, reflecting broad-based weakness across technology counters. Infosys fell 85 points, or 6.13%, to 1,299 on the NSE, while TCS declined 4.77% to 2,619. HCLTech and Wipro dropped 4.48% and 3.64%, respectively, and Tech Mahindra was lower by 2.66%. In the mid-tier space, Coforge tumbled 1,345 points, or 5.32%, Persistent lost 3.16% to 5,279, and LTIMindtree slipped 3.62% to 5,023.This comes just a day after the 10 stock pack Nifty IT index emerged as the worst performing segment on Thursday, plunging close to its lowest level in almost 10 months and continuing to be the weakest sector for this year, so far.In US, American Depository Receipts of Infosys and Wipro retreated sharply, extending losses for a second straight session. Infosys ended down as much as 10% at $14.21 on the New York Stock Exchange, while Wipro shed 5% to finish at $2.28. The weakness follows a brutal outing in the previous trade when the Nifty IT index dived up to 5.5% and several heavyweights cracked as much as 6%, according to ET. Traders expect the pressure to radiate across the wider technology universe, keeping stocks such as Coforge, Persistent Systems, LTIMindtree and HCLTech firmly in focus. The immediate trigger for the latest bout of anxiety has been a new offering from Anthropic, the firm known for the Claude chatbot. Investors see the move as another reminder that AI adoption could intensify rivalry, squeeze profitability and chip away at the competitive strengths traditionally enjoyed by IT services companies, according to ET. Sentiment towards software exporters had already been fragile, and the announcement deepened the caution. According to VK Vijayakumar from Geojit Investments, “Tech stocks, reeling under the Anthropic shock, are unlikely to recover soon.” According to some market watchers, as much as 40% of revenue could be at risk if automated systems take over work once handled by human employees. Brokerage house Motilal Oswal also flagged risks, arguing that AI may render traditional software development and testing assignments less critical. However, it recommended keeping an eye on potential tie-ups in the coming three to six months that could pave the way for fresh AI-led deals by mid-2026.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
