Major Indian information technology (IT) stocks experienced significant declines on Tuesday following AI giant Anthropic's announcement of an initial public offering (IPO) filing on Nasdaq. The news reinvigorated investor enthusiasm for artificial intelligence-related assets, leading to a shift away from traditional IT service providers.
Among the hardest hit on the NSE IT index were Infosys, which fell 2.31 percent, and Tata Consultancy Services (TCS), down 2.09 percent. Other notable declines included Coforge Ltd. and Persistent Systems Ltd., dropping 1.66 percent and 1.54 percent respectively. Wipro, Mphasis, HCL Technologies, and Tech Mahindra also saw losses exceeding 1 percent, with all ten index constituents trading in negative territory.
AI Resurgence Impacts Traditional Tech
The planned Anthropic IPO, coupled with Meta Platforms Inc.'s reported $95 billion equity offerings, signaled a fresh boost for the artificial intelligence sector. This resurgence in AI investments challenged recent market speculation about a potential 'reverse AI' trade, where investors might shift capital back into traditional IT services amid high borrowing costs.
Nandish Shah, Deputy Vice President at HDFC Securities, noted the immediate market reaction. “The artificial-intelligence theme received a fresh boost after Anthropic filed for an initial public offering on the Nasdaq. Semiconductor stocks rallied sharply, with the iShares Semiconductor ETF (SOXX) rising nearly 3 percent. Nvidia gained 2.4 percent, Micron 3 percent, Broadcom 2.3 percent and AMD 2.8 percent,” Shah stated.
Brokerage Downgrades and Shifting Spending
Infosys, in particular, faced additional pressure as at least four brokerages downgraded their ratings on the stock in a single day. The broader Indian IT sector has contended with sustained headwinds this calendar year due to substantial global investments flowing into AI infrastructure, tokens, AI-enabled software, cybersecurity, and data modernization efforts.
This shift in IT spending has placed increasing pricing pressure on traditional maintenance, support, and other effort-based services, which typically form a significant portion of Indian IT companies' revenue. While some analysts had hoped that rising interest rates would temper AI investment and redirect focus to core IT support, recent Wall Street activity suggests otherwise.
Anthropic's Financials Highlight Growth and Investment
Anthropic, an AI startup valued at $965 billion in its last funding round, reported a net loss of $80.7 billion in the first half of 2026, despite generating $16.3 billion in revenue. The company had seen a remarkable 1,000 percent year-on-year revenue jump in 2025, though it anticipates a slower growth rate in the future.