IT stocks fall today: Infosys, TCS, HCL plunge sharply — what triggered the sell-off?
Times of India
by TOI BUSINESS DESKFebruary 24, 2026
AI-Generated Deep Dive Summary
IT stocks in India experienced a significant downturn today, with major players like Infosys, TCS, HCL Technologies, and Wipro witnessing sharp declines. The sell-off was triggered by Anthropic's announcement that its Claude Code tool can automate COBOL modernization, raising concerns about the future of legacy systems. This development has sent shockwaves through the IT sector, as companies grapple with potential competition from AI-driven solutions.
The Nifty IT index dropped 3.71% to 30,380.55 by mid-morning, reflecting the broader market sentiment. Infosys shares fell over 3%, while TCS and HCL Tech saw drops of 2.87% and 4.36%, respectively. Other companies like Mphasis and Persistent Systems also faced significant losses, with declines exceeding 2%. This sell-off follows Anthropic's recent unveiling of another AI product aimed at automating professional workflows, reigniting fears about the impact of AI on traditional IT services.
COBOL, or Common Business-Oriented Language, remains a cornerstone for critical financial and transaction systems globally. With over 95% of US ATM transactions still running on COBOL, the potential for AI to disrupt this sector is immense. Anthropic's claims highlight the growing threat of automation in areas traditionally dominated by IT services providers like IBM and Indian tech giants.
The market reaction underscores a broader shift in the industry: as artificial intelligence continues to advance, traditional IT service providers face pressure to innovate or risk losing ground. This trend is particularly concerning for companies reliant on legacy systems, which are costly to maintain and
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Originally published on Times of India on 2/24/2026