Tuesday’s trading painted a grim picture for Indian markets, as the Sensex cratered 1,068.74 points or 1.28% to 82,225.92, while Nifty retreated 288.35 points or 1.12% to 25,424.65. The trigger was Anthropic’s unveiling of a Claude-based tool to revamp COBOL code, igniting fears of diminished software outsourcing needs.
Nifty IT bore the heaviest losses at 4.74%, underscoring investor jitters over AI eating into service contracts. Ripple effects saw Realty tumble 2.54%, Services 1.46%, Media 1.31%, Consumption 0.86%, Infra 0.72%.
Gainers offered solace: Metal +0.93%, Energy +0.78%, Commodities +0.70%, PSE +0.56%, PSU Bank +0.29%.
Mid and smallcaps fared better, with Nifty Midcap 100 down 0.32% at 59,066.35 and Smallcap 100 off 0.55% at 16,958.65.
Sensex standouts included NTPC, HUL, Tata Steel, Power Grid, Titan, Axis Bank, Sun Pharma. The underperformers list was IT-heavy: Tech Mahindra, HCL Tech, Eternal (InterGlobe), Infosys, TCS, L&T, Trent, Bharti Airtel, HDFC Bank, BEL.
Expert take from Sudeep Shah, SBI Securities: Nifty’s sharp open decline led to 25,328 intraday low, ending at 25,425. Watch 25,370-25,350 support; violation eyes 25,150-24,950. Bullish cap at 25,600-25,650.
This downturn reflects deeper anxieties about AI disruption in a sector employing millions. As tools like Anthropic’s proliferate, India’s IT bellwethers must pivot to higher-value AI integrations to sustain growth amid global competition.