IT stocks slump; Infosys dives over 7 pc

New Delhi, Feb 4 (PTI) IT stocks tumbled on Wednesday, with Infosys slumping over 7 per cent, in-line with heavy selloff in tech companies in the US.

Shares of Infosys plunged 7.19 per cent, Tata Consultancy Services tanked 6.95 per cent, LTIMindtree dropped 5.51 per cent, and Hexaware Technologies tumbled 4.98 per cent on the BSE.

The stock of Persistent Systems edged lower by 4.69 per cent, HCL Technologies declined 4.22 per cent, Tech Mahindra lost 4.12 per cent, and Wipro fell by 3.73 per cent.

The combined market valuation of these firms eroded Rs 1.66 lakh crore.

The BSE IT index tumbled 5.49 per cent to 35,109.51.

"IT stocks faced sharp selling pressure, tracking weakness in global technology shares.

"Sentiment in the sector deteriorated after AI startup Anthropic unveiled an end-to-end workflow automation productivity tool, rekindling concerns that rapid advances in AI could disrupt traditional software business models and weigh on industry-wide profitability," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In the US market, the Nasdaq Composite index tumbled 1.43 per cent on Tuesday.

IT stocks were the biggest drag for the markets. After a remarkable rally in the previous trade, the 30-share BSE Sensex ended 78.56 points, or 0.09 per cent, higher at 83,817.69. The 50-share NSE Nifty went up 48.45 points or 0.19 per cent to settle at 25,776.

"Overall upside remained limited due to weakness in IT stocks amid concerns over reduced demand for traditional outsourcing following Anthropic's introduction of new AI-driven automation tools," Vinod Nair, Head of Research, Geojit Investments Ltd, said. PTI SUM TRB