IT Stocks Plunge: US Jobs Data, AI Concerns Trigger Up to 5% Drop in Infosys, TCS

• Indian IT shares faced a severe beating, with the Nifty IT index falling over 4% due to Wall Street tech company declines.
• Investor sentiment soured following better-than-expected US jobs reports for January and new concerns regarding AI's impact.
• Infosys and Coforge shares dropped approximately 5%, with Infosys hitting its lowest level since April 17 last year.
• Reduced expectations of a US rate cut and growing AI competition, especially after Anthropic's legal AI tool launch, pressured IT stocks.
• Experts suggest the decline is a mix of impulsive reaction and a real threat from AI automation to labor-heavy IT models.