Global markets jolted on February 4, 2026 after AI startup Anthropic rolled out new enterprise-focused AI tools that investors fear could automate tasks typically outsourced to traditional IT and software firms. The announcement sparked a sharp sell-off across major U.S. tech and software stocks, dragging indices like the Nasdaq lower and wiping out value in the sector.

This shift rippled into Indian markets early Wednesday. By the time Dalal Street opened, major IT services shares — including Infosys, Tata Consultancy Services, HCLTech, Wipro, Tech Mahindra and Persistent Systems — were down up to about 6 per cent amid heightened uncertainty about future revenue and job models for the sector.

The concern among global and domestic investors is that Anthropic’s Claude Cowork plug-ins — designed to automate legal, sales, marketing and data analysis workflows — could undercut demand for traditional software, analytics and back-office services, a core revenue stream for many established IT companies.

Earlier reactions in the U.S. saw legal-software and data service stocks plunge, with tools automating contract review and compliance sparking deeper anxiety about competition for subscription-based software businesses.

In essence, AI disruption fears — not weak earnings or local news — drove the sell-off, as traders reposition portfolios amid rapid technological shifts. Whether this is a short-term reaction or a more enduring reassessment of IT sector economics remains a key question for investors this week.