Markets tumble with IT shares under pressure from AI concerns

Stock markets opened sharply lower on Tuesday as investors trimmed exposure to technology shares amid weak global cues. The 30-share BSE Sensex dropped 813.13 points, or 0.97 per cent, to 82,481.53 in early trade, according to PTI. The 50-share NSE Nifty also slipped 230.15 points, or 0.89 per cent, to 25,482.85. Broad-based selling across IT and select heavyweight stocks pulled the markets lower and set a cautious tone for the session.

Eternal led the losses as markets witnessed heavy selling, declining 3.82 per cent in early deals. HCL Technologies, Infosys, Tech Mahindra and Tata Consultancy Services also faced strong selling pressure. Bharti Airtel, Bajaj Finance, Bharat Electronics Ltd, Trent, Adani Ports, ITC and Titan traded in the red as investors booked profits across markets. Reuters reported that TCS, Infosys, HCLTech and Wipro fell between 2.5 per cent and 4 per cent, which deepened losses in frontline indices and further weakened overall market sentiment.

AI Disruption Fears Weigh on Markets

Citrini Research sparked fresh concerns after it released a report on the impact of artificial intelligence. The New York-based financial services firm outlined forward-looking scenarios that showed how AI could disrupt major sectors of the global economy. It highlighted credit card services and food delivery platforms as areas with high exposure to automation tools. Investors reacted quickly and reduced holdings in companies linked to digital services and technology outsourcing.

The report also said policymakers often struggle to keep pace with rapid technological change. It warned that the absence of a clear and coordinated strategy could intensify deflationary pressures. The Associated Press quoted the report on the growing risk of a deflationary spiral if action remains delayed. These warnings raised fresh doubts about earnings visibility in the IT sector. As a result, traders adopted a more cautious approach toward tech valuations.

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IBM Slump and Global Factors Add Pressure

Anthropic added to market jitters after it announced that its Claude chatbot can assist in modernising COBOL systems. Many banks, insurers and public institutions still rely on COBOL-based infrastructure that runs on IBM platforms. Investors feared that faster AI-driven upgrades could alter traditional service contracts and reduce demand for legacy support work. Following the announcement, IBM shares plunged more than 13 per cent in New York trading.

The sharp decline marked IBM’s steepest single-day percentage fall since October 2000. Bloomberg data showed that the stock has dropped 27 per cent in February so far, putting it on track for a steep monthly loss. Meanwhile, rising crude oil prices added to inflation worries in global markets. Fresh tariff remarks by US President Donald Trump revived concerns over trade tensions. Together, these factors pushed investors to take a defensive stance.

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