Nifty IT index crash today: From Anthropic Claude Code to AI-led disruption concerns - Top reasons behind TCS, Infosys, HCL fall

IT shares tumbled like a pack of cards on Tuesday after the sell-off on Wall Street spilled on to the Indian stock market. Investor sentiment was affected after  leading AI research firm Anthropic in its blog post revealed how its "Claude Code" tool can be used to modernise software written in COBOL - the decades-old programming language that handles large-scale batch transactions across critical industries.

From Wall Street to Dalal Street, the AI concerns spooked investor sentiment. 

Another factor that dampened sentiment on Dalal Street is Citrini Research's latest note titled “The 2028 Global Intelligence Crisis,”. The note outlined a scenario in which contract cancellations at Tata Consultancy Services Ltd, Infosys Ltd and Wipro would accelerate through 2027. 
 
IT stocks led the losses on Nifty today with the Nifty IT index plunging 1675 points or 5.3% to a fresh 52 week low of 29,875. All ten Nifty IT components were in tbe red with Infosys (4.14%), HCL Technologies (7%), TCS (3.61%), Tech Mahindra (6.88%),  Persistent Systems (6.75%), Coforge (6.25%) and LTI Mindtree 6.77% among top losers on the index. 

On Nifty, Tech Mahindra (6.68%), HCL Tech (6.16%), Infosys (3.95%) and TCS (3.24%)were among the top index losers. 

The BSE IT index also hit a fresh 52-week low of 29,081, crashing 1,546 pts intra day. 

On Sensex, shares of Tech Mahindra, HCL Tech, Infosys and TCS fell up to 7%. 

Commenting on the crash in Nifty IT, Sachin Gupta, VP – Research at Choice Broking said instead of 'buy on dips' approach, investors can now shift to a 'sell on rise' strategy. 

"From a technical standpoint, the picture has deteriorated further. The index has breached the important 61.8% Fibonacci retracement level (Golden Ratio) and witnessed a negative crossover of key moving averages, commonly known as a Death Cross. This suggests that the earlier 'buy on dips' approach has now shifted to a “sell on rise” strategy. With the index struggling to sustain even short-term pullbacks, the technical structure points to further downside toward the 29,300–28,700 support zone. A meaningful recovery is unlikely unless a strong global trigger — particularly stability in the Nasdaq — helps improve overall sentiment," said Gupta. 

Anand James, Chief Market Strategist, Geojit Investments expects more correction in the Nifty IT Index. 

"Oscillators being oversold, and with some of them showing positive divergence, recovery signs were beginning to be visible in the last few days. However, with today’s slippage, we are below the February 13 reaction low of 31,422 with momentum indicators favouring further slide. Standard deviation studies point to 29,961 as the nearest support below, with further major support seen at 28,800 and 27,200, in the event of a collapse. Upside reversal level is seen at 30300 intraday, and at 31300 on a closing basis, with further resistance seen at 36200 for the Nifty IT index, which closed at 31550.5 on Monday," said James.