Infosys, TCS, Wipro: IT stocks nosedive after slump in US tech stocks; NIFTY IT tanks 6%. Here is what happened overnight

The NIFTY IT index tumbled as much as 5.99%, or 2,313.85 points, to hit the low of 36,297.90 levels, with all 10 constituents trading in negative territory.

Among individual names, LTIMindtree was down 6%, while Infosys was trading nearly 6% lower at ₹1,560.30 on the NSE. Wipro was down over 4%, and TCS was trading 5.49% lower.

What happened on Wall Street

According to news reports, tech stocks suffered a significant decline in the US trade on Wednesday as investors grew concerned that new artificial intelligence tools could disrupt established software and tech companies, eroding their pricing power and future profits.

This fear triggered heavier selling in software and cloud infrastructure stocks, especially those seen as vulnerable to AI competition.

AI heavyweights Nvidia and Microsoft each fell almost 3%. Alphabet dropped 1.2% ahead of its quarterly report on Wednesday, while Amazon declined 1.8% ahead of its Thursday report.

The Nasdaq Composite index ended 1.43% lower at 23,255.19 levels.

Concerns about Anthropic were a central factor in the tech sell-off on February 3, 2026. Investors reacted sharply to new developments around Anthropic’s AI products, especially tools that threaten the business models of established software, legal, and data companies, reports added.

Anthropic is an AI company behind the Claude family of models. On and around the trading session of February 3, markets were spooked because:

• Anthropic has released new AI plug-ins/extensions for its Claude Cowork agent, which can automate tasks in legal, sales, marketing, compliance, and data analysis — areas traditionally serviced by expensive, licensed software.

• These tools directly compete with incumbents such as legal research platforms, analytics databases, and professional-services software. That raised fears that AI could displace high-margin, long-term subscription revenue, as per news reports.

Bottom Line

The tech slump on February 3 was mainly driven by AI disruption fears, mixed earnings guidance, elevated valuations, and rotation away from high-growth stocks. Risks perceived around how AI will reshape software competitiveness and profit margins aggravated selling pressure across the sector.

Indian IT companies' ADRs fall

Last seen, data showed that ADRs of Indian IT services companies saw a notable decline. Infosys' ADRs were down 5.56%, while Wipro ADR slipped 4.83%.