< -5%

-5% to -3%

Resgen

-3% to 0%

BPCL

HINDPETRO

0% to 3%

IRM Energy

Gandhar Oil

MRPL

3% to 5%

Chennai Petro

Bajaj Finance Q3 profit fell 6 percent to Rs 4,066 crore, missing estimates., Income rose to Rs 21,215 crore, AUM improved to Rs 4.88 lakh crore., Brokerages noted higher provisions and one-off costs but improving asset quality.

* Bajaj Finance Q3 profit fell 6 percent to Rs 4,066 crore, missing estimates.
* Income rose to Rs 21,215 crore, AUM improved to Rs 4.88 lakh crore.
* Brokerages noted higher provisions and one-off costs but improving asset quality.

Bajaj Finance shares traded flat after Q3 profit fell 6% to Rs 4,066 crore, missing estimates due to higher provisions and one-off costs. Brokerages cited mixed views, noting improved asset quality, steady income growth, and moderated loan growth.

shorts/business/bajaj-finance-shares-trade-flat-on-missing-q3-estimates-brokerages-see-steady-profitability-outlook

* Bajaj Finance Q3 profit fell 6 percent to Rs 4,066 crore, missing estimates.
* Income rose to Rs 21,215 crore, AUM improved to Rs 4.88 lakh crore.
* Brokerages noted higher provisions and one-off costs but improving asset quality.

Shares of <a href="https://www.moneycontrol.com/india/stockpricequote/finance-nbfc/bajajfinance/BAF">Bajaj Finance</a> traded largely flat on Wednesday after the non-banking finance company reported a December-quarter profit that fell short of estimates, weighed down by higher provisions and one-off expenses.

The stock slipped to an intraday low of Rs 944.15 on the NSE before recovering most of the losses. At around 1.45 pm, shares were trading at Rs 970.20, up 0.6 percent.

Brokerage Jefferies, which has a ‘buy’ rating on the stock with a target price of Rs 1,270, said the December-quarter profit missed expectations due to one-time provisions and labour-law related costs. It added that core profit rose about 23 percent year-on-year after adjusting for one-offs.

Jefferies noted that loan growth moderated to 22 percent year-on-year, but said asset quality improved and the company’s credit cost guidance was encouraging. It continues to maintain Bajaj Finance as a top pick.

Antique Stock Broking, which has a ‘buy’ call with a target price of Rs 1,070, said higher provisions impacted profitability but described the move as prudent and supportive of asset quality over the medium term.

Ambit Capital maintained a ‘sell’ rating with a target price of Rs 713, citing structurally higher credit costs following tighter loss norms and increased competition from banks, which it said could delay recovery to a 20 percent return on equity.

Emkay Global Financial Services, which has a ‘reduce’ rating and a target price of Rs 950, said the spike in provisions was largely discretionary. It added that underlying business momentum remains intact, with improving bad loan trends and a steady profitability outlook.

The company reported a 6 per cent decline in consolidated net profit to Rs 4,066 crore for the third quarter of the current financial year. The company had reported a net profit of Rs 4,308 crore in the year-ago period.

Total income rose to Rs 21,215 crore for the third quarter of the ongoing fiscal year from Rs 18,058 crore in the year-ago period, Bajaj Finance said in a regulatory filing. The consolidated assets under management improved to Rs 4,88,477 crore at the end of December 2025 compared to Rs 3,98,043 crore in the third quarter of last year.

Net interest income grew to Rs 11,317 crore as against Rs 9,382 crore in the third quarter of FY25. With regard to asset quality, the gross non-performing assets (NPAs) of the company increased to 1.21 per cent from 1.12 per cent during the same period a year ago.

However, Net NPAs declined marginally to 0.47 per cent as compared to 0.48 per cent a year earlier. The company has a provisioning coverage ratio of 61 per cent as against 57 per cent on stage 3 assets as of December 31, 2024.
<h3><em><strong>(With inputs from Reuters) </strong></em></h3>
<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

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Bajaj Finance shares trade flat on missing Q3 estimates, brokerages see steady profitability outlook

Shares of Bajaj Finance traded largely flat on Wednesday after the non-banking finance company reported a December-quarter profit that fell short of estimates, weighed down by higher provisions and one-off expenses.

The stock slipped to an intraday low of Rs 944.15 on the NSE before recovering most of the losses. At around 1.45 pm, shares were trading at Rs 970.20, up 0.6 percent.

Brokerage Jefferies, which has a ‘buy’ rating on the stock with a target price of Rs 1,270, said the December-quarter profit missed expectations due to one-time provisions and labour-law related costs. It added that core profit rose about 23 percent year-on-year after adjusting for one-offs.

Jefferies noted that loan growth moderated to 22 percent year-on-year, but said asset quality improved and the company’s credit cost guidance was encouraging. It continues to maintain Bajaj Finance as a top pick.

Antique Stock Broking, which has a ‘buy’ call with a target price of Rs 1,070, said higher provisions impacted profitability but described the move as prudent and supportive of asset quality over the medium term.

Ambit Capital maintained a ‘sell’ rating with a target price of Rs 713, citing structurally higher credit costs following tighter loss norms and increased competition from banks, which it said could delay recovery to a 20 percent return on equity.

Emkay Global Financial Services, which has a ‘reduce’ rating and a target price of Rs 950, said the spike in provisions was largely discretionary. It added that underlying business momentum remains intact, with improving bad loan trends and a steady profitability outlook.

The company reported a 6 per cent decline in consolidated net profit to Rs 4,066 crore for the third quarter of the current financial year. The company had reported a net profit of Rs 4,308 crore in the year-ago period.

Total income rose to Rs 21,215 crore for the third quarter of the ongoing fiscal year from Rs 18,058 crore in the year-ago period, Bajaj Finance said in a regulatory filing. The consolidated assets under management improved to Rs 4,88,477 crore at the end of December 2025 compared to Rs 3,98,043 crore in the third quarter of last year.

Net interest income grew to Rs 11,317 crore as against Rs 9,382 crore in the third quarter of FY25. With regard to asset quality, the gross non-performing assets (NPAs) of the company increased to 1.21 per cent from 1.12 per cent during the same period a year ago.

However, Net NPAs declined marginally to 0.47 per cent as compared to 0.48 per cent a year earlier. The company has a provisioning coverage ratio of 61 per cent as against 57 per cent on stage 3 assets as of December 31, 2024.
(With inputs from Reuters) 
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Export stocks surged up to 20% on India-US trade deal optimism., US tariff cut to 18% boosts India's textile and shrimp export competitiveness., Textile and shrimp firms gain from expanded US and EU trade deals

* Export stocks surged up to 20% on India-US trade deal optimism.
* US tariff cut to 18% boosts India's textile and shrimp export competitiveness.
* Textile and shrimp firms gain from expanded US and EU trade deals

Export-focused stocks like Gokaldas Exports, Avanti Feeds, and Kitex Garments surged up to 20% after the India-US trade deal reduced tariffs, boosting sentiment and giving Indian exporters a competitive edge over other Asian countries.

shorts/business/india-us-trade-deal-gokaldas-exports-avanti-feeds-kitex-garments-other-export-oriented-shares-extend-gains-rise-up-to-18

* Export stocks surged up to 20% on India-US trade deal optimism.
* US tariff cut to 18% boosts India's textile and shrimp export competitiveness.
* Textile and shrimp firms gain from expanded US and EU trade deals

Export-oriented stocks such as Gokaldas Exports, Avanti Feeds and Kitex Garments extended their gains in Wednesday’s trade, rising as much as 20 percent, amid positive sentiment following the India-US trade deal.

These stocks added to the sharp rally seen in the previous session. The companies derive a significant portion of their revenues from exports to the United States. The shares had earlier come under pressure after the US raised tariffs on Indian exports.

Shares of <a href="https://www.moneycontrol.com/india/stockpricequote/textiles-readymade-apparels/gokaldasexports/GE05">Gokaldas Exports</a> surged 20 percent to hit an intraday high of Rs 832.85 on the NSE. The stock opened with a gap-up gain of 12.15 percent and has risen over 41 percent in the past two sessions.

Among other textile stocks, K P R Mill gained 2.62 percent to Rs 1,014.90 per share. Indo Count Industries jumped around 11 percent, while Arvind advanced over 2 percent. Kitex Garments was up about 12 percent.

According to ICICI Securities, a reduction in reciprocal tariffs from 50 percent to 18 percent, along with recent trade deals with the UK and the European Union, is expected to provide a multi-year advantage to the textile sector by boosting earnings and cash flows through an expanded export base and capacity additions.

The cut in US tariffs to 18 percent from 50 percent earlier gives India a competitive edge over other Asian exporters, where tariff rates range between 19 percent and 30 percent, ICICI Securities said.

Shrimp exporters also witnessed strong buying interest. <a href="https://www.moneycontrol.com/india/stockpricequote/aquaculture/avantifeeds/AF21">Avanti Feeds</a> rose 12 percent and Apex Frozen Foods climbed 10 percent, while Coastal Corporation hit the 5 percent upper circuit.

The US accounted for 53 percent of Apex Frozen’s export sales in FY25. North America contributed 65.4 percent of Avanti Feeds’ total sales in the first quarter of FY25.

<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

India-US trade deal: Gokaldas Exports, Avanti Feeds, Kitex Garments, other export-oriented shares extend gains, rise up to 18%

Export-oriented stocks such as Gokaldas Exports, Avanti Feeds and Kitex Garments extended their gains in Wednesday’s trade, rising as much as 20 percent, amid positive sentiment following the India-US trade deal.

These stocks added to the sharp rally seen in the previous session. The companies derive a significant portion of their revenues from exports to the United States. The shares had earlier come under pressure after the US raised tariffs on Indian exports.

Shares of Gokaldas Exports surged 20 percent to hit an intraday high of Rs 832.85 on the NSE. The stock opened with a gap-up gain of 12.15 percent and has risen over 41 percent in the past two sessions.

Among other textile stocks, K P R Mill gained 2.62 percent to Rs 1,014.90 per share. Indo Count Industries jumped around 11 percent, while Arvind advanced over 2 percent. Kitex Garments was up about 12 percent.

According to ICICI Securities, a reduction in reciprocal tariffs from 50 percent to 18 percent, along with recent trade deals with the UK and the European Union, is expected to provide a multi-year advantage to the textile sector by boosting earnings and cash flows through an expanded export base and capacity additions.

The cut in US tariffs to 18 percent from 50 percent earlier gives India a competitive edge over other Asian exporters, where tariff rates range between 19 percent and 30 percent, ICICI Securities said.

Shrimp exporters also witnessed strong buying interest. Avanti Feeds rose 12 percent and Apex Frozen Foods climbed 10 percent, while Coastal Corporation hit the 5 percent upper circuit.

The US accounted for 53 percent of Apex Frozen’s export sales in FY25. North America contributed 65.4 percent of Avanti Feeds’ total sales in the first quarter of FY25.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

BPO stocks fell as Anthropic's legal AI tool triggered a tech selloff., eClerx fell 10%, Info Edge dropped 7%, others also declined, AI progress sparks job loss concerns in BPO and tech sectors

* BPO stocks fell as Anthropic's legal AI tool triggered a tech selloff.
* eClerx fell 10%, Info Edge dropped 7%, others also declined
* AI progress sparks job loss concerns in BPO and tech sectors

Shares of BPO firms like eClerx, Info Edge, Firstsource, and Hinduja Global Solutions fell sharply after Anthropic launched an AI legal tool, raising fears that advanced AI could disrupt and replace jobs in the BPO and professional services sectors.

shorts/business/info-edge-eclerx-other-bpo-stocks-plunge-up-to-10-after-anthropic-s-new-ai-tool-launch

* BPO stocks fell as Anthropic's legal AI tool triggered a tech selloff.
* eClerx fell 10%, Info Edge dropped 7%, others also declined
* AI progress sparks job loss concerns in BPO and tech sectors

The shares of BPO (Business Process Outsourcing) companies plunged in trade on February 4, amid a broader tech selloff triggered by Anthropic’s launch of a new legal AI tool.

The shares of <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software-mediumsmall/eclerxservices/eS06">eClerx Services</a> crashed nearly 10 percent to trade at Rs 4,459 apiece. Naukri.com-parent <a href="https://www.moneycontrol.com/india/stockpricequote/miscellaneous/infoedgeindia/IEI01">Info Edge</a> shares plunged nearly 7 percent to Rs 1,166 apiece. The company provides BPO-related services primarily through its recruitment-focused divisions and subsidiaries like Quadrangle.

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software-mediumsmall/firstsourcesolutions/FS07">Firstsource Solutions</a> and Hinduja Global Solutions shares dropped around 2 percent each.
<h3><strong>What triggered the tech selloff today?</strong></h3>
Wall Street ended yesterday's session sharply lower as investors remained concerned that AI was creating more competition for software makers, after Anthropic’s launch of a legal tool for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.
<h3><strong>Why are BPO stocks falling today?</strong></h3>
BPO (Business Process Outsourcing) companies are specialized firms that handle non-core operational tasks for other businesses, such as customer support, finance, IT services, and human resources.

The improving AI technologies hold the possibility of replacing several human jobs, directly threatening BPO companies. “Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative," they said.

“The significance of platforms now deploying AI-driven systems capable of executing complex SAP migrations and enterprise transformations in weeks—work that previously required years of human-led effort—cannot be overstated. This is not incremental automation; it represents a fundamental compression of time, cost, and manpower across core enterprise processes,” said Bhavik Joshi, Business Head, INVasset PMS.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-weak-start-us-asian-markets-fall-2-liveblog-13809430.html">LIVE updates</a> from the stock markets here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

Info Edge, eClerx, other BPO stocks plunge up to 10% after Anthropic's new AI tool launch

The shares of BPO (Business Process Outsourcing) companies plunged in trade on February 4, amid a broader tech selloff triggered by Anthropic’s launch of a new legal AI tool.

The shares of eClerx Services crashed nearly 10 percent to trade at Rs 4,459 apiece. Naukri.com-parent Info Edge shares plunged nearly 7 percent to Rs 1,166 apiece. The company provides BPO-related services primarily through its recruitment-focused divisions and subsidiaries like Quadrangle.

Firstsource Solutions and Hinduja Global Solutions shares dropped around 2 percent each.
What triggered the tech selloff today?
Wall Street ended yesterday's session sharply lower as investors remained concerned that AI was creating more competition for software makers, after Anthropic’s launch of a legal tool for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.
Why are BPO stocks falling today?
BPO (Business Process Outsourcing) companies are specialized firms that handle non-core operational tasks for other businesses, such as customer support, finance, IT services, and human resources.

The improving AI technologies hold the possibility of replacing several human jobs, directly threatening BPO companies. “Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative,&quot; they said.

“The significance of platforms now deploying AI-driven systems capable of executing complex SAP migrations and enterprise transformations in weeks—work that previously required years of human-led effort—cannot be overstated. This is not incremental automation; it represents a fundamental compression of time, cost, and manpower across core enterprise processes,” said Bhavik Joshi, Business Head, INVasset PMS.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Indian IT stocks plunged over 8 percent after Anthropic launched a legal AI tool, Analysts warn of AI-driven disruption but see long-term resilience for IT firms, AI adoption may shift IT billing from effort-based to outcome-based models

* Indian IT stocks plunged over 8 percent after Anthropic launched a legal AI tool
* Analysts warn of AI-driven disruption but see long-term resilience for IT firms
* AI adoption may shift IT billing from effort-based to outcome-based models

Indian IT stocks plunged over 6% after Anthropic launched a legal AI tool, raising fears of AI-driven disruption. Analysts warn of structural changes but note that firms adapting to AI could benefit long-term, while short-term volatility is expected.

shorts/business/it-stocks-fall-up-to-7-how-big-a-threat-is-anthropic-s-ai-tool-for-indian-it-firms-here-s-what-analysts-say

* Indian IT stocks plunged over 8 percent after Anthropic launched a legal AI tool
* Analysts warn of AI-driven disruption but see long-term resilience for IT firms
* AI adoption may shift IT billing from effort-based to outcome-based models

The shares of Indian IT companies crashed on February 4, after Anthropic's launch of a legal AI tool retriggered concerns around rising competition. Analysts have cautioned investors of a possible structural disruption, but highlighted the silver lining behind the AI threat.

The Indian IT companies are accompanying global peers, with Wall Street closing in the deep red earlier yesterday. The <a href="https://www.moneycontrol.com/indian-indices/nifty-it-19.html">Nifty IT</a> index was down more than 7 percent, on track for its worst day since March 2020. <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/infosys/IT">Infosys</a> and LTI Mindtree shares crashed more than 8 percent each.

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/coforge/NII02">Coforge</a> shares fell nearly 8 percent, while Persistent Systems, Mphasis and Tata Consultancy Services (<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/tataconsultancyservices/TCS">TCS</a>) shares dropped around 7 percent each. Tech Mahindra and <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/hcltechnologies/HCL02">HCL Technologies</a> shares fell around 6 percent, while Wipro shares were down nearly 5 percent.

The sharp selloff erased <a href="https://www.moneycontrol.com/news/business/markets/ai-concerns-wipe-out-nearly-rs-2-lakh-crore-m-cap-from-top-it-stocks-13810111.html">Rs 2 lakh crore </a>from the total market capitalisation of India's top IT stocks.

"The rally fuelled by the US-India trade deal will face hurdles to sustain. The IT selloff in the US yesterday will drag the Indian IT index, too, constraining the rally in the Indian market. Since valuations continue to be high there is no fundamental support for a sustained rally," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
<h3><strong>Why are IT stocks plunging today?</strong></h3>
Wall Street ended yesterday's session sharply lower as investors remained concerned that AI was creating more competition for software makers, after <a href="https://www.moneycontrol.com/news/business/markets/infosys-ltimindtree-tcs-other-it-stocks-plunge-6-amid-global-tech-selloff-here-s-why-13809833.html">Anthropic’s launch of a legal tool</a> for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.

“Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative," they said.
<h3><strong>What lies ahead?</strong></h3>
The sharp correction in the Nifty IT index needs to be viewed through the lens of <strong>structural disruption</strong> rather than just cyclical weakness, said Bhavik Joshi, Business Head, INVasset PMS. “Recent commentary from global enterprise technology leaders highlights a shift that markets are still in the process of digesting: AI is no longer augmenting services, it is beginning to replace large portions of traditional, labor-intensive workflows,” he said.

“The significance of platforms now deploying AI-driven systems capable of executing complex SAP migrations and enterprise transformations in weeks—work that previously required years of human-led effort—cannot be overstated. This is not incremental automation; it represents a fundamental compression of time, cost, and manpower across core enterprise processes,” the analyst explained.

This can create <strong>near-term anxiety for service-heavy IT models</strong> built on long execution cycles and linear headcount growth, Joshi said.

As Indian enterprises integrate Claude for critical coding workflows, dependency on large vendor teams may decline, <strong>squeezing billable hours and margins</strong>, 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.
<h3><strong>Is there a silver lining to the AI threat?</strong></h3>
Joshi explained that <strong>technology adoption accelerates during periods of macro uncertainty</strong>. “When margins tighten and execution risk rises, enterprises gravitate toward tools that deliver speed, predictability, and scalability. AI-led enterprise platforms thrive precisely in these environments. What equity markets are currently pricing is near-term earnings visibility; what enterprises are investing in is long-term operational resilience,” he said.

The analyst explained that history suggests that <strong>sharp drawdowns in technology stocks often occur at moments of inflection</strong>—when old delivery models are being questioned but new ones are not yet fully reflected in financial statements. “The current correction appears less a signal of declining relevance and more a reflection of markets struggling to price a rapid shift in how enterprise value will be created going forward,” he said.

“However, markets often conflate disruption with destruction. While <strong>certain service-oriented roles will inevitably face pressure</strong>, the broader implication is a redefinition of value creation rather than its elimination. Enterprises are not reducing spend; they are reallocating it—from effort-based billing toward outcome-based execution, platform-led delivery, and AI-native architectures. In such transitions, incumbents with deep domain expertise, data access, and client trust are more likely to adapt than be displaced,” Joshi added.

Siddharth Maurya, Founder &amp; Managing Director, Vibhavangal Anukulakara, said that the sell-off in Indian IT stocks appeared to be <strong>more of a sentiment-based reaction</strong> than a sudden deterioration in fundamentals. He said that the markets may be overestimating the AI threat in the short term.

“AI will certainly disrupt pricing and delivery structures, but it will also increase the addressable market for early movers. In the short term, IT stocks are likely to remain volatile as investors recalculate margins and visibility. In the medium term, IT companies that adopt AI capabilities will lead the charge, and the laggards will fall behind,” he said.

"This current IT stock crash is more of a knee-jerk reaction," Informist quoted Sumit Pokharna, Vice President of Research at Kotak Securities, as saying. There are fears that the number of clients for core software developers may be hurt by AI tools, considering that AI players could replace core software and business models based on outsourcing, according to the analyst.

However, Pokharna believes investors need to wait and watch how customisable these AI models can be as Indian IT companies operate at a service-provider level for US companies, relatively shielded to AI-related developments.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-weak-start-us-asian-markets-fall-2-liveblog-13809430.html">LIVE updates</a> from the stock markets here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

IT stocks fall up to 8%: How big a threat is Anthropic's AI tool for Indian IT firms? Here's what analysts say

The shares of Indian IT companies crashed on February 4, after Anthropic's launch of a legal AI tool retriggered concerns around rising competition. Analysts have cautioned investors of a possible structural disruption, but highlighted the silver lining behind the AI threat.

The Indian IT companies are accompanying global peers, with Wall Street closing in the deep red earlier yesterday. The Nifty IT index was down more than 7 percent, on track for its worst day since March 2020. Infosys and LTI Mindtree shares crashed more than 8 percent each.

Coforge shares fell nearly 8 percent, while Persistent Systems, Mphasis and Tata Consultancy Services (TCS) shares dropped around 7 percent each. Tech Mahindra and HCL Technologies shares fell around 6 percent, while Wipro shares were down nearly 5 percent.

The sharp selloff erased Rs 2 lakh crore from the total market capitalisation of India's top IT stocks.

&quot;The rally fuelled by the US-India trade deal will face hurdles to sustain. The IT selloff in the US yesterday will drag the Indian IT index, too, constraining the rally in the Indian market. Since valuations continue to be high there is no fundamental support for a sustained rally,&quot; said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Why are IT stocks plunging today?
Wall Street ended yesterday's session sharply lower as investors remained concerned that AI was creating more competition for software makers, after Anthropic’s launch of a legal tool for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.

“Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative,&quot; they said.
What lies ahead?
The sharp correction in the Nifty IT index needs to be viewed through the lens of structural disruption rather than just cyclical weakness, said Bhavik Joshi, Business Head, INVasset PMS. “Recent commentary from global enterprise technology leaders highlights a shift that markets are still in the process of digesting: AI is no longer augmenting services, it is beginning to replace large portions of traditional, labor-intensive workflows,” he said.

“The significance of platforms now deploying AI-driven systems capable of executing complex SAP migrations and enterprise transformations in weeks—work that previously required years of human-led effort—cannot be overstated. This is not incremental automation; it represents a fundamental compression of time, cost, and manpower across core enterprise processes,” the analyst explained.

This can create near-term anxiety for service-heavy IT models built on long execution cycles and linear headcount growth, Joshi said.

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.
Is there a silver lining to the AI threat?
Joshi explained that technology adoption accelerates during periods of macro uncertainty. “When margins tighten and execution risk rises, enterprises gravitate toward tools that deliver speed, predictability, and scalability. AI-led enterprise platforms thrive precisely in these environments. What equity markets are currently pricing is near-term earnings visibility; what enterprises are investing in is long-term operational resilience,” he said.

The analyst explained that history suggests that sharp drawdowns in technology stocks often occur at moments of inflection—when old delivery models are being questioned but new ones are not yet fully reflected in financial statements. “The current correction appears less a signal of declining relevance and more a reflection of markets struggling to price a rapid shift in how enterprise value will be created going forward,” he said.

“However, markets often conflate disruption with destruction. While certain service-oriented roles will inevitably face pressure, the broader implication is a redefinition of value creation rather than its elimination. Enterprises are not reducing spend; they are reallocating it—from effort-based billing toward outcome-based execution, platform-led delivery, and AI-native architectures. In such transitions, incumbents with deep domain expertise, data access, and client trust are more likely to adapt than be displaced,” Joshi added.

Siddharth Maurya, Founder &amp;amp; Managing Director, Vibhavangal Anukulakara, said that the sell-off in Indian IT stocks appeared to be more of a sentiment-based reaction than a sudden deterioration in fundamentals. He said that the markets may be overestimating the AI threat in the short term.

“AI will certainly disrupt pricing and delivery structures, but it will also increase the addressable market for early movers. In the short term, IT stocks are likely to remain volatile as investors recalculate margins and visibility. In the medium term, IT companies that adopt AI capabilities will lead the charge, and the laggards will fall behind,” he said.

&quot;This current IT stock crash is more of a knee-jerk reaction,&quot; Informist quoted Sumit Pokharna, Vice President of Research at Kotak Securities, as saying. There are fears that the number of clients for core software developers may be hurt by AI tools, considering that AI players could replace core software and business models based on outsourcing, according to the analyst.

However, Pokharna believes investors need to wait and watch how customisable these AI models can be as Indian IT companies operate at a service-provider level for US companies, relatively shielded to AI-related developments.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

HAL shares dropped 8% after exclusion from India's stealth jet project., Three private firms shortlisted for AMCA fighter jet programme., Defence stocks declined after Budget lacked major policy announcements.

* HAL shares dropped 8% after exclusion from India's stealth jet project.
* Three private firms shortlisted for AMCA fighter jet programme.
* Defence stocks declined after Budget lacked major policy announcements.

Hindustan Aeronautics Ltd shares fell over 8% after reports said it was excluded from developing India’s next-gen stealth fighter jet, with three private firms shortlisted for the AMCA programme. The stock had previously gained but dropped after the news.

shorts/business/hindustan-aeronautics-shares-drop-8-on-report-of-its-exit-from-india-s-stealth-fighter-jet-project

* HAL shares dropped 8% after exclusion from India's stealth jet project.
* Three private firms shortlisted for AMCA fighter jet programme.
* Defence stocks declined after Budget lacked major policy announcements.

Shares of Hindustan Aeronautics Ltd (HAL) fell over 8 percent on Wednesday after a report said the state-owned defence major is no longer in the race to develop India’s next-generation stealth fighter jet.

The stock declined 8.34 percent to an intraday low of Rs 4,097.60 on the National Stock Exchange, dragging investor sentiment a day after it had posted strong gains.

According to a report in The Economic Times, three private sector companies have been shortlisted to develop and manufacture next-generation fighter aircraft under the Advanced Multirole Combat Aircraft (AMCA) programme, with the final selection expected within the next three months.

The report, citing sources, said that following the evaluation of technical bids submitted by seven Indian entities, Tata Advanced Systems Ltd, Larsen &amp; Toubro and Bharat Forge have been shortlisted, while the remaining bidders, including Hindustan Aeronautics Ltd, have been ruled out of the process.

<a href="https://www.moneycontrol.com/india/stockpricequote/aerospacedefence/hindustanaeronautics/HAL">HAL</a> shares had risen over 3 percent in the previous trading session but surrendered all those gains on Wednesday following the report.

The stock had also come under pressure earlier this month after brokerages flagged the absence of major policy announcements for the defence sector in the Union Budget, despite an increase in capital expenditure allocation.

Defence stocks witnessed a sharp sell-off after the <a href="https://www.moneycontrol.com/news/business/markets/bdl-hal-other-defence-shares-fall-up-to-5-as-brokerages-see-lack-of-big-bang-measures-in-budget-2026-13804875.html" target="_blank">Budget was presented on February 1</a>, with several frontline and mid-cap stocks declining 5–10 percent in a single session.

Nomura had said the Budget lacked "big bang" measures for the sector, though it viewed the increase in defence capital expenditure as a positive.

<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

HAL shares fall 8% on report of its exit from India’s stealth fighter jet project

HAL share price falls 8% on report of its exit from India’s stealth fighter jet project

Shares of Hindustan Aeronautics Ltd (HAL) fell over 8 percent on Wednesday after a report said the state-owned defence major is no longer in the race to develop India’s next-generation stealth fighter jet.

The stock declined 8.34 percent to an intraday low of Rs 4,097.60 on the National Stock Exchange, dragging investor sentiment a day after it had posted strong gains.

According to a report in The Economic Times, three private sector companies have been shortlisted to develop and manufacture next-generation fighter aircraft under the Advanced Multirole Combat Aircraft (AMCA) programme, with the final selection expected within the next three months.

The report, citing sources, said that following the evaluation of technical bids submitted by seven Indian entities, Tata Advanced Systems Ltd, Larsen &amp;amp; Toubro and Bharat Forge have been shortlisted, while the remaining bidders, including Hindustan Aeronautics Ltd, have been ruled out of the process.

HAL shares had risen over 3 percent in the previous trading session but surrendered all those gains on Wednesday following the report.

The stock had also come under pressure earlier this month after brokerages flagged the absence of major policy announcements for the defence sector in the Union Budget, despite an increase in capital expenditure allocation.

Defence stocks witnessed a sharp sell-off after the Budget was presented on February 1, with several frontline and mid-cap stocks declining 5–10 percent in a single session.

Nomura had said the Budget lacked &quot;big bang&quot; measures for the sector, though it viewed the increase in defence capital expenditure as a positive.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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