IT stocks declined sharply today, with the Nifty IT index down nearly 2%, even as the broader market opened higher.
The fall was driven by multiple factors. TCS reported its first-ever annual decline in dollar revenue since listing, raising concerns about slowing growth. At the same time, global demand remains weak, with clients delaying tech spending and project decisions.
Adding to the pressure, Anthropic’s new AI model preview has sparked concerns around rising competition and potential disruption in the tech space.
Overall, the sector is facing a mix of near-term growth slowdown and evolving AI-led challenges, which may keep sentiment subdued in the short term.