Indian tech stocks slump as Anthropic's AI tool raises global staffing concerns

• Anthropic released plug-ins for its Claude Cowork agent to automate tasks across legal, sales, marketing and data analysis, triggering a selloff among U.S. and European data analytics and software companies
• All 10 constituents of India's IT sub-index declined, with Persistent Systems down 7%, TCS falling 5.2%, Infosys dropping 5.8%, and Wipro declining nearly 4%
• The sharp decline reflects growing market concerns about AI automation displacing traditional IT services and professional staffing, particularly impacting India's major software services exporters

Summary

Market Impact:

Indian technology stocks experienced significant losses on Wednesday, with the Nifty IT index (.NIFTYIT) plummeting 6%, marking its worst single-day performance since May 2022. The sell-off mirrored broader declines in global software stocks following AI-related disruption concerns.

Catalyst:

AI developer Anthropic launched new plug-ins for its Claude Cowork agent on Friday, designed to automate tasks across legal, sales, marketing, and data analysis functions. The announcement triggered a sell-off among U.S. and European data analytics, professional services, and software companies, with concerns spreading to international markets.

Company Performance:

All 10 constituents of the Indian IT sub-index posted losses:

• Persistent Systems led declines, falling 7%
• Infosys dropped 5.8%
• Tata Consultancy Services (TCS) declined 5.2%
• Wipro fell nearly 4%

Industry Implications:

The market reaction reflects growing investor anxiety about AI-driven disruption threatening traditional IT services and professional services business models. Anthropic's automation tools particularly target areas where Indian IT companies derive substantial revenue—including software services, data analysis, and business process outsourcing—raising concerns about future demand for human-staffed services.

Broader Context:

The sharp decline signals that markets are beginning to price in the potential impact of advanced AI tools on the labor-intensive IT services sector, particularly affecting companies heavily reliant on staff augmentation and routine service delivery models.