Bengaluru, Feb 4, 2026, 16:13 IST — The market is closed.
- Infosys (INFY.NS) fell 7.19%, closing at 1,535.90 rupees, pulling down IT sector stocks despite gains in the broader indexes.
- The sell-off came after a worldwide slump in software and data stocks, triggered by Anthropic’s launch of new automation plug-ins.
- Traders will be looking for any spillover effects into Thursday’s session, as well as comments from management at upcoming Infosys investor events.
Infosys Ltd shares plunged 7.19%, closing at 1,535.90 rupees on Wednesday, marking their steepest drop in months. The decline came as investors offloaded Indian IT exporters amid renewed concerns that emerging AI technologies might reduce the need for large delivery teams.
The immediate spark came from U.S. AI firm Anthropic unveiling plug-ins for its Claude Cowork agent, automating tasks in legal, sales, marketing, and data analysis—key areas where firms traditionally charge clients based on staff time and project hours. “Dependency on large vendor teams may decline, squeezing billable hours and margins,” said Systematix Group analyst Ambrish Shah. (Billable hours are the time services firms charge clients for.) Reuters
The move was significant since IT carries heavy weight on India’s main indices. On Wednesday, the sector took a sharp hit, hitting investors who see it as a gauge for global growth and U.S. tech spending. The Nifty 50 closed up 0.19%, but the IT index plunged 5.9%, marking its worst daily drop in nearly six years. Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, called it a “knee-jerk reaction.” Reuters
Outside India, the selloff pressed on. Nvidia CEO Jensen Huang dismissed concerns that AI will replace software tools as “illogical,” yet that didn’t ease the pressure on software-linked stocks across Asia. Reuters
On Tuesday in U.S. trading, Infosys’ American depositary receipts (INFY) dropped 5.56%, closing at $17.32. Volume surged well beyond its 50-day average, MarketWatch reports. (ADRs are certificates traded in the U.S. representing shares of foreign companies.)
Infosys has been ramping up its AI efforts. On Tuesday, it announced a partnership with Citizens Financial Group to back an “AI-first Innovation Hub” in Bengaluru, leveraging its Topaz Fabric suite. Citizens CIO Michael Ruttledge described the hub as a move to create “modern, secure, and intelligent banking capabilities.” Meanwhile, Infosys executive Dennis Gada framed the initiative as a step toward helping the bank embrace an “AI-first operating model.” Infosys
On Monday, Infosys announced it has renewed and expanded its multi-year digital innovation partnership with the Madison Square Garden family of companies. The Theater at Madison Square Garden will now be called the Infosys Theater. Infosys CMO Sumit Virmani described the deal as strengthening its position as the “Official Digital Innovation Partner” for the Knicks, Rangers, and the arena. Infosys
Wednesday’s decline wasn’t confined to one stock. Tech-services rivals also took a hit, signaling a sector-wide selloff rather than a collapse in just one company.
The downside scenario is complicated, with the key question being the speed at which clients shift from pilot programs to full production. Another issue: does automation first reduce headcount per project or enable more work within the same budget? “Sometimes the market just shoots first and asks questions later,” said AGF Investments portfolio manager Mike Archibald in a note about the wider software selloff. Reuters
Indian cash markets remain closed, shifting focus to Thursday’s open and whether U.S.-listed tech and software stocks can steady or face further declines. India’s next market holiday won’t come until March, limiting chances for the sector to pause without new price signals.
Infosys has laid out a few key dates for traders to watch. The company announced an Investor AI Day in Bengaluru scheduled for Feb. 17, though the full agenda is still pending.
Investors are gearing up for insights on demand, pricing, and delivery models as Infosys management takes the stage at the Nuvama India Conference on Feb. 9 and the Kotak Chasing Growth conference on Feb. 23, according to the company’s investor calendar.
