The Indian IT sector faced one of its worst trading sessions on Tuesday as the Nifty IT index crashed by over 5%, mirroring a broader 18% decline over the past month. Investor sentiment has been rattled by back-to-back announcements from global AI leaders, including Anthropic’s release of ‘Claude Code,’ which threatens to automate traditional IT services like legacy code modernization. Major players like Infosys, TCS, and HCL Tech were among the biggest losers as markets reassess the long-term viability of the labor-arbitrage model in the age of advanced AI agents.
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