Why did Infosys, TCS and other IT stocks crash by up to 8% today? 

Synopsis: Anthropic has just released a new AI tool, sending shockwaves across global markets. Investors fear this technology could disrupt traditional software and IT services, leading large scale sell off in IT stocks worldwide.

In early February 2026, stock markets worldwide were thrown into chaos by an unexpected event. There was no war, no oil crisis, and no banking failure. Instead, the fear arose from a new artificial intelligence tool launched by Anthropic, the company behind the Claude AI model. 

Investors quickly grew concerned that AI might affect the way many businesses operate, and this anxiety led to a sharp decline in technology stocks, from Wall Street in the US to Dalal Street in India.

Anthropic’s announcement was not just a simple chatbot update. It introduced a smarter version of Claude that can perform office tasks. This raised concerns about the future of jobs, software companies, and IT services. 

In a single trading day, software, legal tech, and financial services companies worldwide lost roughly $285 billion in market value. Experts even gave this market shock a dramatic nickname, the “SaaSpocalypse,” indicating a potential crisis for companies selling software subscriptions.

What Exactly Did Anthropic Launch?

Anthropic introduced Claude Cowork, an AI assistant made for everyday office work. You can think of it as a very smart digital helper. Previous AI tools mainly answered questions or helped write text. However, Claude Cowork does more; it can read files, organise folders, draft documents, and complete tasks step by step, almost like a junior employee.

To increase its usefulness, Anthropic released special add-ons called plugins. These plugins instruct Claude on how to perform specific types of work. For instance, there are plugins for marketing, finance, customer support, data analysis, and product planning. Companies can specify how they want Claude to work, what tools to use, and which steps to follow. This enables the AI to fit into actual office workflows.

The plugin that alarmed investors the most was the legal plugin. This tool helps review contracts, sort legal documents, check compliance rules, and prepare legal summaries. Anthropic stated that lawyers should still review everything, but investors focused on another point: AI was now entering fields once reserved for trained professionals and expensive software.

Why Did Markets Panic So Quickly?

The panic arose because investors recognised an important fact. The legal plugin was not created with a specialised AI model exclusively for law. It was mainly a collection of smart instructions directing Claude on how to handle legal work. This meant Claude’s existing capabilities were sufficiently advanced to tackle many complex tasks with the right guidance.

This indicated a major change. Previously, companies used AI models like Claude via APIs and built their own tools on top of them. Now, Anthropic was offering ready-made business solutions. This made the AI platform appear less like a helper and more like a competitor to traditional software and IT companies.

Investors began to wonder: if one AI system can manage many tasks across departments, why would companies continue paying for multiple costly software tools? This shift in thinking resulted in heavy selling in software stocks.

Global IT Stocks Tumble

The reaction in global markets was swift and dramatic. Shares of Thomson Reuters fell by 20 percent as investors feared AI could threaten its legal and data services. RELX, which owns the legal database LexisNexis, also saw its stock drop by 17 percent, and also legal platform, LegalZoom, experienced a 20 percent decline.

The panic did not stop with legal tech firms. Major enterprise software companies like Adobe, Microsoft, Salesforce, and ServiceNow also declined as investors worried that AI tools could eventually lessen demand for their products. Even the research firm Gartner faced a significant drop. Overall, software stocks globally lost an estimated $285 billion in value in just one day.

Shockwaves Reach India

Since Indian IT companies work closely with global clients, the fear quickly spread to India. When US tech stocks fall, Indian IT stocks usually follow. The Nifty IT index dropped sharply by 6 percent as investors worried about the future of outsourcing.

Shares of Infosys (8%), Wipro (5%), Persistent Systems (8%), Tata Consultancy Services (6%), and other IT stocks fell as markets questioned whether AI could reduce demand for services like coding, testing, tech support, and back-office work. This decline was not due to poor earnings from these companies. Instead, it stemmed from investor concerns about the impact of AI on future business models.

Why This Feels Like a Turning Point

For years, AI was viewed as a tool that helps people work faster. Now, investors are beginning to see it as a potential replacement for certain jobs or software products. This shift in perspective is significant as stock markets react based on expectations, and when those expectations change suddenly, prices can fall quickly.

The term “SaaSpocalypse” indicates this fear. SaaS companies depend on selling subscriptions for their tools. If AI can deliver similar services more intelligently and cost-effectively, some of those business models might face challenges. Meanwhile, companies that effectively utilise AI could become even stronger.

The Bigger Picture

Anthropic’s launch underscores how quickly AI is progressing. Claude Cowork was introduced just weeks before the plugins arrived. In the software industry, such rapid updates are uncommon. This speed makes investors anxious because changes are occurring faster than many companies can adjust.

However, this situation is not only about fear. AI also opens new doors. And the companies that learn to work alongside AI and develop new services could experience rapid growth. Workers who acquire new skills may discover new job opportunities. Technology history suggests that significant changes often bring short-term panic before leading to long-term progress.

From Wall Street to Dalal Street, the sudden drop in IT stocks stemmed from a clear idea that AI is no longer just assisting with work; it is starting to do the work itself. Anthropic’s new AI tool made investors recognise how quickly that future could arrive. This realisation, more than any financial outcome, triggered the rapid decline in technology stocks globally.

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