Markets tumble with IT shares hit by renewed anxiety over AI impact

February 25, 2026

AI company Anthropic’s blog post triggered a significant sell-off in Indian IT stocks, causing benchmark indices to fall sharply. The Nifty IT index plunged 4.7%, reflecting investor anxiety over AI’s potential to automate legacy system maintenance, as seen with IBM’s substantial decline. Analysts anticipate further downside for the IT sector.

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