‘SaaSpocalypse’ hits Indian IT stock
The Indian IT sector’s rally on the back of India-US trade deal proved to be short-lived as stocks took a heavy beating on Wednesday. The Nifty IT index registered its sharpest ever fall of 2,286 points. In percentage terms, it fell 5.87% — the highest since March 23, 2020.
The sharp fall came after US-based artificial intelligence firm, Anthropic, announced that it is launching a new set of AI tools for corporate legal teams and hit IT and SaaS (software as a service) companies across the globe, including Indian system integrators. Infosys led the decline with a 7.26% dip on the National Stock Exchange (NSE), followed by Tata consultancy Services (TCS; 7.01%).
