Shares of Infosys slipped over 6% on Wednesday, February 4, tracking a sharp overnight sell-off in US software stocks and renewed concerns around the long-term impact of artificial intelligence on traditional IT services business models.
The immediate trigger for the fall was a steep correction in US-listed software and research firms. On Wall Street, information-technology research firm Gartner plunged as much as 25% intraday and ended the session down 21%, dragging sentiment across the global IT sector. Other major US technology names such as Adobe, Salesforce and Microsoft also declined between 3% and 8%, pulling the Nasdaq down by more than 350 points overnight.
The weakness in US tech stocks directly impacted Indian IT counters, including Infosys, due to their heavy exposure to global enterprise spending. Infosys’ US-listed ADR fell around 6% overnight, setting the tone for sharp losses in domestic trading.
Investor anxiety intensified after the launch of Anthropic PBC’s legal automation tool, which sparked fears that AI-led solutions could disrupt demand for traditional IT services, consulting, and research-led offerings. This led to aggressive selling across software, financial services, and technology stocks, wiping out over $285 billion in global market value in a single session.
Adding to the pressure, Gartner issued below-expectation full-year guidance, citing a tougher selling environment as clients delay or scrutinise technology spending amid rapid AI-led changes. This commentary reinforced fears that global IT budgets could come under pressure, weighing on large Indian IT exporters like Infosys.
As a result, Infosys shares came under broad-based selling along with peers such as TCS, Wipro, HCLTech and Tech Mahindra, reflecting a sector-wide reaction rather than company-specific developments.
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