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Stock Market News: Tech stocks in the US fell sharply after artificial intelligence company Anthropic announced the launch of a new advanced AI tool.

News from the US sent TCS and Infosys shares plummeting, causing investors to lose Rs 2 lakh crore.

Tech Share Falls: On Tuesday, heavy pressure was seen on IT stocks in the domestic stock market, and this fall was not just limited to profit booking, but deep concerns related to AI were working behind it. Though the market started strongly, as soon as it opened, heavy selling was seen in IT stocks. TCS fell by about 7%, Infosys by about 8%, while HCL Tech, Tech Mahindra, and Wipro also saw a sharp decline. The market value declined by about 2 lakh crores, which means investors have suffered a loss of this much. The major reason for this fall was the negative news from America.

A blow from the US: The impact of AI

US tech stocks fell sharply after artificial intelligence company Anthropic announced the launch of a new advanced AI tool that can perform everyday tasks such as document review, data handling, analytical, and processing tasks with great efficiency.

These are the tasks for which large global companies have relied on Indian IT service providers. Investors are now concerned that AI could reduce demand for these traditional IT services in the future.

Decline in ADR increased concern.

The first impact of this concern was seen in American Depository Receipts (ADRs) listed in the US market. Infosys and Wipro's ADRs fell sharply overnight. ADRs are American representations of shares of foreign companies. When these decline, they have a direct impact on the Indian market the next day.

The result was that as soon as the Indian market opened, investor sentiment was already weak, and heavy selling was seen in IT stocks.

Is it just nervousness?

The current market decline is based more on future concerns than on the current fundamentals of companies. However, it is clear that investors are becoming more cautious about the increasing penetration of AI, the business models of IT companies, and their long-term growth.

In the coming days, statements from IT companies on AI strategy, revenue guidance and client demand will determine the direction of the market.