Infosys, Wipro shares in focus as US-listed ADRs slide up to 6%. Here’s why

Market Sentiment - The announcement by US AI startup Anthropic has intensified bearish sentiment in the software sector, leading to a sell-off in technology stocks [1][7] - Wipro's ADRs fell 4.8% to $2.56, while Infosys ADRs declined 5.6% to $17.32, reflecting investor unease [1][7] IT Sector Performance - International brokerage Jefferies has reduced its exposure to the IT sector, with its India portfolio weight for the sector now at 5.6%, significantly below the MSCI India weight of 9.7 [2] - Foreign portfolio investors have pulled out $34 billion from Indian equities over the past 16 months, with the IT sector being one of the worst affected [2] Anthropic's Developments - Anthropic introduced a new tool for corporate legal teams capable of automating various legal functions, which has raised concerns about competition and margin pressure in the software industry [1][7] - The company clarified that its plugin does not provide legal advice and that AI-generated analysis should be reviewed by licensed attorneys [3][7] Broader Market Trends - US markets showed weakness, with the S&P 500 slipping 0.84% to 6,917.81 and the Nasdaq falling 1.43% to 23,255.19 [6] - Major tech stocks like Nvidia and Microsoft slid nearly 3% each, while Alphabet and Amazon also experienced declines ahead of their earnings reports [6]