Why Indian IT Stocks Fell Sharply Today
Feb 04 2026
NIFTY IT cracked ~6.3%, heading for its worst day since March 2020
All 10 IT stocks in the red
Key Trigger:
AI Disruption Fears
• Anthropic launched new AI plug-ins (Claude Cowork agent) that can automate tasks across coding, legal, sales, marketing & data analysis
• This sparked a global selloff in software & data stocks, spilling over to Indian IT
Why it hurts Indian IT companies
• Indian IT’s labour-intensive model depends on large teams & billable hours
• AI automation may reduce need for large vendor teams
• Risk of margin pressure & lower billing
• Entry-level IT jobs (testing, routine coding) face disruption
Stock-wise impact
• Infosys ↓ 7.3%
• TCS ↓ 5.8%
• HCLTech ↓ 5.1%
• Wipro ↓ 3.9%
Bottom line:
Markets are pricing in long-term structural risk from AI to India’s IT outsourcing model, triggering panic selling today.
Wall Street Wrap | Markets Under Pressure
Feb 06, 2026
US Markets Close Lower
• S&P 500 ↓ 1.2% at 6,799.99
• NASDAQ ↓ 1.6% at 22,540.59
• Dow Jones ↓ 1.2% at 48,908.41
Volatile trade continued as tech stocks remained under heavy selling pressure.
(Previous session: S&P 500 ↓0.5%, NASDAQ ↓1.5%, Dow ↑260 pts)
Tech & AI Stocks in Focus
• Investor worries rising over AI disrupting traditional business models & margins
• Alphabet (Google) reported strong earnings, highlighting gains from AI investments
• Gemini AI hit 750 million monthly users, nearing ChatGPT levels
• Alphabet hinted Capex may double to $175–185 billion for AI infrastructure
Qualcomm disappointed with weak revenue outlook, citing global chip shortages
Macro Watch: Jobs & Fed
• ADP private jobs: +22,000 (below expectations)
• Weekly jobless claims awaited
• Fed kept rates unchanged at 3.5%–3.75%
• Fed’s Lisa Cook signaled no urgency for further rate cuts
Gold & 
Silver Slide
• Gold fell, reversing earlier gains
• Silver crashed up to 16% to ~$73.5/oz
• Strong US dollar pressured metal prices
Oil Prices Fall
• Brent crude ↓ 1.5% at $68.42
• WTI crude ↓ 1.5% at $64.14
• Decline followed news of US–Iran talks in Oman, easing supply disruption fears
Bottom Line:
Markets are jittery amid AI-driven tech selloff, weak job data, strong dollar, and geopolitical developments, keeping volatility elevated.