IT Stocks Plunge: Jefferies Warns of More Pain as AI Threatens Revenue

• The Nifty IT index fell by 1% on Thursday, marking a 7% decline in two sessions, its biggest single-day fall since March 2020.
• Leading IT companies like Mphasis, Infosys, HCL Technologies, Coforge, and Persistent Systems saw shares decline.
• AI developer Anthropic launched new legal tools for its Claude AI chatbot, raising concerns about AI's impact on traditional IT services.
• Jefferies warned that AI's Co-Work plugins could harm application services revenue, which accounts for 40-70% of IT companies' total revenue.
• Experts believe generative AI could perform many outsourcing and software tasks, leading to widespread selling in global tech stocks.