Indian IT giants took a brutal beating on the early morning of Wednesday, 4 February 2026, with Infosys, LTIMindtree, TCS, and peers plunging up to 6% in a global tech bloodbath fueled by panic of AI disruptions. The Nifty IT index cratered nearly 6% to 36,393.70 early on, its sharpest drop in months, dragging the heavyweight Sensex and Nifty lower.
Persistent Systems, LTI Mindtree, Coforge, and Infosys declined by over 6% each, Mphasis, Tech Mahindra, TCS, and HCL Tech fell by nearly 6%, and Wipro dropped by more than 4%. At 9.20 am, Nifty IT led sectoral losses with Infosys at Rs. 1555.90 (down by 6.04%), TCS at Rs. 3,054.90 (down by 5.28%). Indian stock market mirrored Wall Street’s Tuesday stride. Salesforce and Adobe crashed 7%, Nvidia and Microsoft dipped 3%, Alphabet 1.2%, and Amazon 1.8%, ahead of earnings.
Anthropic’s Claude AI legal tool launch reignited jitters that AI could gut software demand. B. Riley Wealth strategist Art Hogan commented, “We’re looking at a lot of software names that are seen as companies that may well be disrupted when we start to see the advancement of artificial intelligence. We’re seeing a lot of software companies across the spectrum get hit.”
Anthropic’s Claude 3.5 Sonnet-powered legal AI suite, launched on Tuesday, automates contracts, research, and compliance. Hogan’s warning highlights “software disruption.” Firms like Salesforce (CRM automation), Adobe (creative AI) signal a broader erosion of over $200 billion in the services market. Indian IT with 60-70% US revenue exposure, Infosys and TCS occupying 62% and 51% respectively, faces 1-2% pricing pressure per reports. Wipro CEO Srini Pallia flagged “cautious spending” amidst market uncertainty. Infosys Q3 guidance held 3-4% FY26 growth amid furloughs hitting 20,000 plus onsite roles.
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