TCS

Adds results details, analyst comments throughout

April 10 (Reuters) - Shares of Tata Consultancy Services TCS.NS fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.

The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.

It was the third-biggest decliner on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI.

The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.

TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.

Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.

Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.

U.S.-listed shares of TCS' smaller rivals Infosys INFY.NS and Wipro WIPR.NS also lost nearly 2% overnight.

While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.

BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.

TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.

(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)

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April 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS EXEC: SEEING CAUTIOUS INVESTMENT DECISION MAKING IN BFSI SEGMENT

• TCS EXEC: PHARMACEUTICAL INDUSTRY ADOPTING AI TO TACKLE GROWTH AND PRICING PRESSURES

• TCS EXEC: MANUFACTURING REMAINED CAUTIOUS IN Q4 ON MACROECONOMIC UNCERTAINTY, TARIFF VOLATILITY

• TCS EXEC: EXPECTING A TECH SPENDING REBOUND IN TELECOM SECTOR

• TCS EXEC: NOT SEEING DELAY, PAUSES IN SPENDS DUE TO RELEASE OF NEW AI MODELS AND TOOLS

Source text: [ID:]

Further company coverage: TCS.NS

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.

Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.

Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.

It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.

A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.

To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.

That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.

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CONTEXT NEWS

Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.

Air India said Wilson made known in 2024 his intention to quit this year.

Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.

(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

March 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND SWISSPORT EXTEND STRATEGIC PARTNERSHIP TO ACCELERATE AI-LED TRANSFORMATION

• FIVE-YEAR AGREEMENT FOR DIGITAL INNOVATION ACROSS SWISSPORT'S GLOBAL AVIATION SERVICES

Further company coverage: TCS.NS

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March 19 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND ABB STRENGTHEN STRATEGIC IT, AI, AND ENGINEERING PARTNERSHIP

Source text: ID:nBSEbyfN23

Further company coverage: TCS.NS

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March 18 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND PEARSON PARTNER TO ACCELERATE AI-POWERED LEARNING FOR GLOBAL INDUSTRIES

Further company coverage: TCS.NS

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March 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS LAUNCHES RAPID OUTCOME AI PLATFORM POWERED BY NVIDIA

Further company coverage: TCS.NS

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March 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TPG TERABYTE ALLOTTED SHARES OF HYPERVAULT, HOLDS 49% STAKE OF HYPERVAULT

• HYPERVAULT RECEIVED 1.99 BILLION RUPEES FROM TPG TERABYTE

Source text: ID:nnAZN4SKA8F

Further company coverage: TCS.NS

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March 6 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• MOODY'S RATINGS: ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF TATA CONSULTANCY SERVICES

Source text: ID:nMDY1k73KR

Further company coverage: TCS.NS

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March 5 (Reuters) -

• TCS IS IN 'ADVANCED' TALKS FOR MORE AI DATA CENTERS IN INDIA - BLOOMBERG NEWS

Source text: https://tinyurl.com/2p2naukv

Further company coverage: TCS.NS

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Una Galani

HONG KONG, March 4 (Reuters Breakingviews) - Is the global selloff in enterprise software and services stocks an overreaction? Maybe not in India. New tools released by Anthropic point towards increasing automation of work that "once required armies of consultants spending years mapping workflows", according to the owner of Claude large language models. The stakes are higher for the world's fourth-largest economy, where a reduction of IT services exports by Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and others or a cut in the size of foreign firms' global capability centres could upend the macroeconomic stability the country has enjoyed.

Providing services to global companies including JPMorgan JPM.N, Goldman Sachs GS.N and Exxon Mobil XOM.N created massive wealth, spurred the rise of major cities like Hyderabad and Bengaluru and created a wall of money that has propelled the stock market, property prices and well-heeled Indians' spending power. Moreover, it also generates foreign exchange earnings that help slow the depreciation of the Indian rupee, which, in turn, keeps a check on imported inflation for the energy-hungry country.

An analysis of Reserve Bank of India data by Samiran Chakraborty, an economist at Citigroup, is sobering. It concludes growth in India's exports of software and other services has, in the recent past, more than offset the widening trade deficit in goods. With further support from remittances of Indians overseas, the current account deficit fell to 0.7% of GDP in the fiscal year to the end of March 2025.

In a scenario of no growth in software exports in fiscal year 2027, Chakraborty estimates most of India's projected surplus in services, roughly $20 billion, would be wiped out. That would weigh on an already weak rupee: in 2025, it declined 5% against the U.S. dollar and was the worst-performing major currency in Asia.

True, India's software services exports have grown 9.5% annually over the past decade – three times the rate of its goods exports – and Citi forecasts 8% for the year to March 2027. What's more, IT firms typically have contracts that last between three to seven years, and so AI disruption – in this case, clients renegotiating terms – ought to be gradual.

But there is widespread fear that automation tools like those from Anthropic could hollow out these industries faster. This fear is reflected in the 20% drop in India's benchmark Nifty IT index since the start of the year. Several executives at top global firms have also told Breakingviews they expect to have fewer people working in their India-based global capability centres in the coming years. Given India's heavy reliance on services in its external accounts, the software apocalypse spells trouble for returns on all rupee-denominated assets. That justifies selling the rumour and buying the fact.

Follow Una Galani on Linkedin and X.

CONTEXT NEWS

India’s Nifty IT Index has fallen 20% so far this year. The Indian rupee has declined 1.3% against the U.S. dollar over the same period.

(Editing by Robyn Mak; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on GALANI/ [email protected]))

March 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - EXPANDS PARTNERSHIP WITH ZSCALER FOR AI-POWERED SOLUTION

• TCS - ANNOUNCED LAUNCH OF TCS WORKSPACE EXPERIENCE STUDIO ENGINEERED WITH ZSCALER DIGITAL EXPERIENCE

Source text: ID:nBSE8cC9Jt

Further company coverage: TCS.NS

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By Haripriya Suresh

MUMBAI, Feb 26 (Reuters) - Fears that new artificial intelligence tools could replace large IT services firms are "overblown" as clients still need help deploying and scaling the technology, Babak Hodjat, chief AI officer at Cognizant CTSH.O, told Reuters in an interview.

Automated AI tools from startups such as Anthropic have stirred concerns about disruption in the business models of software and services firms globally, including India's traditionally labour-intensive IT services industry.

Enterprises are far from being able to rely on a single, all-purpose AI agent, said Hodjat, adding that most clients still need help engineering, integrating, and governing AI systems.

"That mapping is our job, it does not come just automatically out of the box," said Hodjat, whose work helped power Apple's AAPL.O Siri voice assistant.

Nasdaq-listed Cognizant, which has more than 70% of its workforce operating out of India, forecast annual revenue above Wall Street estimates on the back of strong demand as businesses adopt AI into their workflows.

Rivals Tata Consultancy Services TCS.NS and Wipro WIPR.NS have also maintained that rapid AI adoption will boost, rather than shrink, demand for software service providers.

Hodjat's vote of confidence in the role of services companies comes despite AI-related job cuts already underway.

Shipping and logistics management software company WiseTech Global WTC.AX said it would lay off nearly a third of its workforce as it integrates AI into its customer software and internal operations. TCS announced 12,000 job cuts last year, but has since denied to local media that the layoffs were AI-related.

Cognizant, which generates about 30% of its code through AI and aims to reach 50%, is not worried about automation eliminating entry-level jobs. CEO Ravi Kumar S said during the company's earnings call earlier this month that it hired 25,000 fresh graduates in 2025, and expects to exceed that in 2026.

Almost all of Cognizant's clients have already tried to work with AI agents, Hodjat said, but have acknowledged that they need us to deploy it within their systems for returns.

(Reporting by Haripriya Suresh in Mumbai; Editing by Janane Venkatraman)

(([email protected]))

Updates to add details on IT weightage in paragraph 3 and total FPI inflows in first half of February in paragraph 13

By Bharath Rajeswaran

Feb 25 (Reuters) - Indian shares have lagged their Asian and emerging market peers so far in February, pressured by a $68.6 billion rout in the market value of information technology stocks, as investors fretted over disruptions linked to artificial intelligence.

The Nifty 50 index .NSEI has risen 0.4% so far this month, while the Sensex .BSESN edged 0.1% lower, underperforming both the MSCI Asia ex-Japan and MSCI Emerging Markets indexes.

The pressure on the benchmark indexes has largely come from IT stocks, which carry roughly an 11% weightage in the blue-chip index, the second-highest sectoral weight.

The 10 Nifty IT constituents .NIFTYIT have lost a combined $68.6 billion in market capitalisation in February, as of the last close, with the index down 21% and on course for its worst monthly performance in nearly 23 years.

All 10 index members have fallen between 16.8% and 27% in February to date. Coforge COFO.NS is the steepest percentage decliner, down 26.8%, while Tata Consultancy Services TCS.NS and Infosys INFY.NS have led the value erosion, losing about $21.9 billion and $16.3 billion in market value, respectively.

The selloff reflects growing concerns that rapidly advancing automation tools could compress project timelines and disrupt the labour-intensive delivery model underpinning India's roughly $300-billion IT services industry.

Investors have zeroed in on the AI-driven automation push from U.S. firms such as Anthropic and Palantir, heightening concerns over faster project execution, pricing pressure and reduced billable hours.

Brokerages warn the Indian IT sector could face further pressure if AI starts to eat into application services revenue, which typically accounts for 40% to 70% of total revenue for these companies.

"There are no easy answers to whether AI eventually renders IT services obsolete over the long term," said analysts led by Abhishek Pathak of Motilal Oswal.

"The narrative that AI is coming for not just IT but large swathes of the economy could be too strong to shake, at least in the short term," Motilal Oswal analysts said.

A slowdown or contraction in India's IT sector, whether through layoffs or reduced hiring, can have immediate consequences on both residential and commercial real estate demand. The Nifty Realty index .NIFTYREAL has risen roughly 2% in February, following a nearly 18% decline over the past three months.

Concerns over Indian IT companies have also accelerated foreign selling in the sector in 2026 so far.

While FPIs have turned buyers of Indian stocks in February on an overall basis, with inflows of 196.75 billion rupees, they pulled out about 110 billion rupees ($1.21 billion) from IT stocks in the first half of February, following a record 750 billion rupees of net selling in 2025.

($1 = 90.8980 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)

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MUMBAI, Feb 24 (Reuters) - India's technology sector is expected to grow 6.1% this fiscal year, driven by artificial intelligence-led services as well as business at global capacity centres, an industry body said on Tuesday.

Nasscom expects the sector's revenue to rise past $300 billion in fiscal year 2026.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Mrigank Dhaniwala)

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The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Shritama Bose and Ujjaini Dutta

NEW DELHI, Feb 23 (Reuters Breakingviews) - The dissonance surrounding India's artificial intelligence dreams came alive at the AI Impact Summit. The five-day confab in New Delhi last week hosted global A-listers from OpenAI CEO Sam Altman to Alphabet's GOOGL.O Sundar Pichai and attracted investment pledges of over $250 billion, including from Reliance Industries RELI.NS and the Adani Group. But the euphoria barely concealed the country's simmering anxieties around the fast-moving technology.

The 500,000 visitors at the shindig focusing on "bridging the global AI divide" included delegates from 118 countries and swarms of college students attending sessions on everything from the creator economy to AI in agriculture and defence. On Saturday, 88 nations and international groupings endorsed the Delhi Declaration, which commits to democratising AI resources.

Yet even as crowds during the week cheered India’s homegrown government-backed answer to OpenAI and DeepSeek, Sarvam AI’s demonstrations of its "extremely frugal" large language models for Indic languages underscored the steep challenge facing most countries seeking to preserve AI sovereignty. Without powerful domestic alternatives, attendees warned, India risks becoming a digital colony of the United States and China.

Also lacking was substantial discussion on job losses from AI. India already struggles to create the 8 million roles it needs each year to absorb new entrants into the workforce. Its vast IT software services industry and role as the world's back office places it at the sharp end of disruption. V Anantha Nageswaran, India's chief economic advisor, at least hinted at the scale of the looming challenge, calling it "a stress test of our state capacity" - a remark that resonates in a country known for weak policy implementation.

The summit also failed to build consensus on who should shoulder the gargantuan task of reskilling a workforce whose future already fuels frequent primetime television debates. Prime Minister Narendra Modi said reskilling must become a mass movement. In private, executives cast it as the government’s problem. Past precedent suggests India Inc will ultimately be forced to share the burden.

The lack of urgency perhaps stems from knowledge that multi-year contracts with global firms will buy outsourcers like Tata Consultancy Services TCS.NS, among India's largest employers, a few years to adapt. In time AI might create more jobs than it destroys, as Reliance's Chair Mukesh Ambani vowed to prove. But that's cold comfort for the swelling ranks of Indian workers caught up in the churn. For now, India has missed a chance to set the agenda for the Global South on this important topic. Hubris was poor cover.

Follow Shritama Bose on LinkedIn and X.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

The AI Impact Summit 2026 was held at New Delhi from February 16 to 20. The summit attracted 500,000 visitors, 20 heads of government and delegates from 118 countries, India's Ministry of Electronics and Information Technology said on February 20.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the authors, Reuters customers can click on BOSE/ [email protected] and DUTTA/ [email protected]))

Feb 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• CO AND CISCO LAUNCH CENTER OF EXCELLENCE FOR AUTONOMOUS ENTERPRISE

Source text: ID:nNSE31wRGp

Further company coverage: TCS.NS

(([email protected];;))

NEW DELHI, Feb 19 (Reuters) - OpenAI will become the first customer of India's Tata Consultancy Services' data center business, beginning with 100 megawatts of capacity, the parent firm of ChatGPT said on Thursday.

Separately, Tata Group is planning to deploy ChatGPT Enterprise across the company over the next several years, starting with hundreds of thousands of employees, OpenAI added.

(Reporting by Munsif Vengattil in New Delhi; Editing by Raju Gopalakrishnan)

(([email protected];))

Feb 17 (Reuters) - NVIDIA Corp NVDA.O:

• NVIDIA: TECH MAHINDRA DEPLOYING LARGE TELCO MODEL TO POWER AUTONOMOUS NETWORK OPERATIONS USING NVIDIA NIM

• NVIDIA: PERSISTENT ACCELERATES AI‑DRIVEN MOLECULAR DISCOVERY WITH NVIDIA BIONEMO AND NEMO AGENT TOOLKIT

• NVIDIA: INFOSYS BUILDS AN ENTERPRISE-GRADE CODING SMALL LANGUAGE MODEL WITH NVIDIA AI ENTERPRISE

• NVIDIA: RELIANCE NEW ENERGY EXPANDS COLLABORATION WITH CO & SIEMENS BY COMBINING SIEMENS’ DIGITAL TWIN TECHNOLOGY WITH CO'S OMNIVERSE LIBRARIES

• NVIDIA: COLLABORATING WITH NEXT‑GENERATION CLOUD PROVIDERS YOTTA, L&T AND E2E NETWORKS

• NVIDIA: DEVELOPERS BUILDING SOVEREIGN AI SYSTEMS CAN ACCESS NVIDIA NEMOTRON & NEMO TODAY

• NVIDIA: TATA CONSULTING ENGINEERS LAUNCHES COGNITIVE TWIN PLATFORM, BUILT ON NVIDIA OMNIVERSE

• NVIDIA: TO OFFER ANUSANDHAN NATIONAL RESEARCH FOUNDATION GRANTEE INSTITUTIONS COMPLIMENTARY ACCESS TO NVIDIA AI ENTERPRISE SOFTWARE

• NVIDIA: PARTNERING WITH VENTURE CAPITAL FIRMS INCLUDING PEAK XV, ELEVATION CAPITAL, ACCEL INDIA & OTHERS TO IDENTIFY & FUND AI STARTUPS

Source text: [ID:]

Further company coverage: NVDA.O

(([email protected];))

Rewrites throughout

By Urvi Dugar and Abinaya V

Feb 17 (Reuters) - Adani Enterprises ADEL.NS said on Tuesday that it will invest $100 billion to build renewable-powered AI-ready data centres by 2035, positioning India as a contender in the global AI race.

India has seen a surge in big-ticket AI infrastructure spending, with global players like Google GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Microsoft MSFT.O ramping up investments along with domestic companies such as Reliance RELI.NS and TCS TCS.NS.

"AI-ready data centres would be a critical nerve centre of the AI-driven environment and it's natural that large groups with deep pockets will get future-ready by setting up such data centres," said Ambareesh Baliga, an independent market analyst.

Top firms, including Reliance and the Adani Group, are moving quickly to capture the vast opportunities as businesses align themselves with what is seen as a major disruptor ahead, he added.

Adani said that the investment is expected to trigger an additional $150 billion across related industries including server manufacturing and sovereign cloud platforms. Together, this is projected to create a $250 billion AI infrastructure ecosystem in India over the decade, it added.

Shares of Adani Enterprises closed 2.7% higher, making the stock the top gainer on the benchmark Nifty 50 index .NSEI.

INDIA-AI BOOM

Having been on the periphery of the AI boom so far due to the absence of any significant chip manufacturing capability, data centres represent India's best chance of making a mark on the global stage.

The investment will develop a model linking renewable energy, power grid resilience and AI computing, according to Adani.

"For decades, we imported technology. Now we are building the backbone," Chairman Gautam Adani said in a post on X.

"India will not follow the AI century. India will shape it".

The ports-to-power conglomerate will build on its existing 2 gigawatt data centre capacity and scale it to 5 GW to create the world's largest integrated data centre platform, it said, without providing a timeline.

Additionally, Adani will invest $55 billion to expand its renewable energy portfolio, which will include one of the world's largest battery energy storage systems.

AI PARTNERSHIPS

Adani has an existing partnership with Google, which has pledged to invest $15 billion over five years to build an AI data centre, its biggest ever investment in India.

The company said on Tuesday it will expand its existing partnership with Walmart WMT.O-backed Flipkart to develop a second AI data centre.

It is also in discussions with other major players to establish large-scale campuses across India, it said, without disclosing further details.

(Reporting by Urvi Dugar in Bengaluru; Writing by Abinaya Vijayaraghavan; Editing by Sonia Cheema)

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Feb 16 (Reuters) - Advanced Micro Devices Inc AMD.O:

• AMD AND TCS TO BRING STATE-OF-THE-ART ‘HELIOS’ RACK-SCALE AI ARCHITECTURE TO INDIA

• AMD: ENTERPRISES IN INDIA TO ACCESS 200MW AMD 'HELIOS' AI ARCHITECTURE

Source text: ID:nGNXc93Hjr

Further company coverage: AMD.O

(([email protected];))

Updates throughout

By Vivek Kumar M and Nandan Mandayam

Feb 13 (Reuters) - Indian IT shares logged their worst week in more than 10 months on Friday, extending a rout driven by fears of disruption from artificial intelligence tools that wiped about $50 billion off the sector's market capitalisation so far in February.

The launch of a tool by tech startup Anthropic last month triggered a global tech sell-off and intensified concerns that rapid adoption of generative AI could upend India's $283 billion IT services industry.

For the week, the Nifty IT .NIFTYIT slid 8.2%, its steepest drop since April 2025.

Analysts at J.P. Morgan flagged investor concerns that India's IT firms could miss growth targets as AI pushes clients to reallocate spending.

Sat Duhra, portfolio manager at Henderson Far East Income, said IT companies probably haven't done the greatest job in terms of communicating how they can turn AI into an opportunity rather than a threat.

The index fell as much as 5.2% on Friday before paring losses to settle 1.44% lower.

The losses on Friday were led by a 2.1% drop in industry leader Tata Consultancy Services TCS.NS. Infosys INFY.NS declined 1.2% and HCLTech HCLT.NS dropped 1.4%.

Friday's mid-session recovery was largely due to investors "buying the dip" on attractive valuations, Centrum Broking's Piyush Pandey said.

"Investors have largely over-reacted to the threat posed by these AI tools. It is important to note that IT companies remain relevant even in the age of AI, albeit with a leaner headcount."

JP Morgan noted that it's "overly simplistic" to assume that AI can automatically generate enterprise grade software and replace the value IT Services firms create across the cycle.

"IT Services companies remain the plumbers in the tech world, and if enterprise software/SaaS is rewritten on a bespoke basis by agents - it will need significant services plumbing to work in enterprise context and minimise AI slop."

(Reporting by Nandan Mandayam, Vivek Kumar M and Bharath Rajeswaran in Bengaluru, writing by Chandini Monnappa; Editing by Sonia Cheema and Janane Venkatraman)

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Feb 12 (Reuters) - Shares of Indian software exporters slid more than 4% on Thursday, hit by persistent fears of AI-led disruption in the sector and compounded by stronger-than-expected U.S. jobs data that dimmed hopes of near-term interest rate cuts.

The Nifty IT .NIFTYIT index fell to a four-month low early on Thursday, with industry leaders Tata Consultancy Services TCS.NS, Infosys INFY.NS and HCLTech HCLT.NS trading down between 4% and 5%.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema)

(([email protected]; Mobile: +91 9591011727;))

** State Bank of India SBI.NS becomes fourth-largest Indian company by market capitalisation

** Shares of India's largest lender rise 3.4% on the day, pushing market cap to 10.92 trillion rupees ($120.36 billion), per exchange data

** Pips IT bellwether TCS TCS, which fell 2.5% on Wednesday, taking its market cap to 10.52 trillion rupees

** SBI up 7% this week after upbeat Q3 earnings, while TCS is up 1.5%

** Reliance Industries RELI.NS, HDFC Bank HDBK.NS and Bharti Airtel BRTI.NS are the top three, respectively, in terms of market cap

($1 = 90.7275 Indian rupees)

(Reporting by Vivek Kumar M)

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AI LEARNS THE LAW, MARKETS LEARN TO WORRY

Anthropic's new legal tool for Claude AI not only rattled AI-bubble nerves but also cast a shadow over global economies heavily reliant on the export of telecommunications, computer, and information services (ICT), according to Standard Chartered.

For Ireland and India - economies particularly exposed to potential software export slowdown, even a 10% reduction in exports could lower their GDP growth by 1 percentage point each, Standard Chartered said in a note.

"Even a smaller share of the workforce in impacted sectors would translate into significant absolute layoffs for the more populous EM economies like India (where about 5.5 million people are employed in the ICT sector)," said Madhur Jha, global economist and head of thematic research at Standard Chartered.

Top software exporters Tata Consultancy Services TCS.NS, Infosys INFY.NS, HCLTech HCLT.NS, and Tech Mahindra TEML.NS lost between 5.8% and 8.1% last week at the peak of the selloff.

U.S. AI developer Anthropic launched plug-ins for its Claude Cowork agent that would automate tasks across legal, sales, marketing and data analysis.

The launch revived fears that increasingly capable AI tools could dent demand for traditional software, compress margins and cost jobs, triggering a deep selloff in global software stocks.

The S&P 500 software and services index .SPLRCIS has fallen 7.5% as of last week and has seen around $1 trillion in market value evaporate since January 28.

(Kanchana Chakravarty)

*****

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Feb 6 (Reuters) - Indian software exporters shares .NIFTYIT fell about 2% on Friday and were headed for their worst week in over four months, as rapid advances in artificial intelligence deepened worries that high-margin application-services revenues for Indian IT firms could come under pressure.

The sub-index was the biggest sectoral loser on the day, with all 10 constituents trading in the red. Coforge COFO.NS led losses with its 3.8% drop.

TCS TCS.NS and Infosys INFY.NS fell nearly 2% each. Nifty 50 .NSEI was down 0.3%.

The IT index has dropped 6.8% so far this week and was set for its biggest drop since September 2025.

(Reporting by Kashish Tandon in Bengaluru)

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Updates levels, adds graphic after paragraph 11

Feb 5 (Reuters) - Rapid advances in artificial intelligence, triggered in part by Anthropic's latest automation push, could structurally erode the IT sector's high-margin application services revenues, creating downside risks to earnings and valuations, analysts warn.

Shares in India's software exporters .NIFTYIT settled 0.6% lower on Thursday, a day after plunging 6% in their worst session for nearly six years, as AI-driven automation from U.S.-based Anthropic and Palantir fuelled fears of compressed project timelines and disruption to the industry's labour-intensive business model.

The weakness has echoed across global IT stocks this week, extending a broader selloff in companies seen as most exposed to potential AI disruption.

"There is more pain ahead for Indian IT," Jefferies said, adding that Anthropic's and Palantir's claims highlight how AI could potentially erode application service revenues for IT firms.

"With application services accounting for 40–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations."

DISRUPTION

Indian IT firms have been ramping up AI investments and re-skilling efforts, even as weak global tech spending, delayed client decision-making and pricing pressure have weighed on the sector. Foreign investors offloaded a record $8.5 billion worth of Indian IT stocks in 2025.

However, some analysts said the sharp selloff may be overdone.

JPMorgan said that while concerns around AI disruption were not without merit, it was illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software.

Domestic brokerage Kotak Institutional Equities described the decline as a case of "plenty of panic over a little flutter".

Among large IT firms, Tata Consultancy Services TCS.NS, Tech Mahindra TEML.NS and LTIMindtree LTIM.NS have higher exposure to application services, which account for about 55%–60% of revenues, while HCL Tech HCLT.NS has the lowest exposure at around 40%.

Their stocks fell between 4% and 7% % on Wednesday, and extended losses on Thursday.

Brokerage Motilal Oswal estimates that 9%-12% of industry revenues could be eliminated over the next four years due to AI-led disruption.

Jefferies expects AI to weigh on IT-sector revenue growth over the next one to two years, arguing that deflation in legacy service-line revenues will more than offset gains from AI-related opportunities.

The IT sub-index has lost 17% since the start of 2025, including Wednesday's selloff, and is on track for its worst week in over four months.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Writing by Chandini Monnappa; Editing by Mark Potter and Louise Heavens)

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Adds graphic after paragraph 6

By Vivek Kumar M and Kashish Tandon

Feb 4 (Reuters) - Shares of Indian IT exporters .NIFTYIT slumped 6.3% on Wednesday, tracking losses in global software stocks, after Anthropic launched new tools that heightened concerns over AI-driven disruption in the data and professional services industry.

U.S.-based Anthropic on Friday launched plug-ins for its Claude Cowork agent to automate tasks across legal, sales, marketing and data analysis, triggering a selloff in U.S. and European data analytics and software stocks and deepening concerns in India’s $283 billion IT sector, whose labour-intensive model relies on deploying large workforces for client projects.

The Indian IT sub‑index was on track for its worst day since March 2020, with all 10 constituents in the red. Infosys INY.NS led declines with a 7.3% drop.

Other heavyweights TCS TCS.NS and Wipro WIPR.NS fell 5.8% and 3.9% respectively, while HCLTech HCLT.NS was down 5.1%.

"As Indian enterprises integrate Claude for critical coding workflows, dependency on large vendor teams may decline, squeezing billable hours and margins," said Systematix Group analyst Ambrish Shah.

Anthropic’s advanced AI systems also threaten entry‑level talent pool at Indian IT firms by replacing routine development and testing tasks, he added.

(Reporting by Kashish Tandon and Vivek Kumar M in Bengaluru; Editing by Nivedita Bhattacharjee)

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Feb 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• JANATA SAHAKARI BANK SELECTS TCS BANCS

• BANKING PLATFORM TO JANATA SAHAKARI BANK'S MODERNIZE CORE AND DIGITAL BANKING

Further company coverage: TCS.NS

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Jan 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TO ADD 1,600 JOBS WITH NEW BRAZIL CAMPUS

• INVESTS $37 MILLION IN NEW LONDRINA FACILITY

• CAMPUS IN BRAZIL EXPECTED TO COMPLETE BY 2027

Source text: ID:nNSE3Q46zV

Further company coverage: TCS.NS

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