IT Stocks Plummet: Anthropic's AI Tool Sparks Market Crash, Raises Disruption Fears

• Indian IT stocks, including Infosys, TCS, and Wipro, crashed on February 4, with the Nifty IT Index falling over 7%, the biggest drop since March 2020.
• The market downturn was triggered by the launch of Anthropic's new legal AI tool, which analysts believe could significantly disrupt the IT and professional services industry.
• Shares of major IT companies like Infosys, LTI Mindtree, Persistent Systems, Mphasis, and TCS saw declines of 7-8%, wiping out 2 lakh crore rupees for investors.
• Experts suggest AI is moving beyond augmentation to replace labor-based workflows, posing a structural disruption rather than just cyclical weakness for service-heavy IT models.
• Investors are advised to adopt a 'wait and watch' strategy to assess how Indian IT companies integrate AI and adapt to changing pricing and delivery structures.