AI Fears Rock IT Sector: Indian Tech Stocks Plunge Amid Automation Concerns

• Indian IT stocks extended their slide after US-listed shares plunged, reigniting fears that AI could disrupt the sector’s traditional outsourcing model.
• The immediate trigger was the launch of Claude Opus 4.6 by Anthropic, raising concerns that AI can automate coding and enterprise workflows.
• Investors fear rapid AI-driven automation could compress billing hours and reduce workforce intensity for Indian IT companies.
• The Nifty IT index fell 2.83% on Friday, extending losses after a 5.5% drop on Thursday, erasing over $52 billion in market value.
• Brokerages are split on the disruption risk, with Citi warning of structural shifts and HSBC expecting limited immediate revenue disruption.