The sharp decline dragged its market capitalisation down to Rs 9.60 lakh crore, also a multi-year low, slipping below the previous trough of Rs 9.77 lakh crore. With the latest fall, the stock is now down 44% from its all-time high of Rs 4,592, hit in August 2024.TCS has also dropped to its lowest level since September 22, 2020, when it last closed at Rs 2,523. Reflecting the shift in market hierarchy, Also Read | Rs 6 lakh crore wipeout in 8 days! Is AI rewriting the rules for $250 billion Indian IT indus ...

Heavyweights The BSE Sensex opened 800 points lower by 1% at 82,903, while the Nifty 50 was down 236 points to start the day at 25,571 or 0.9% lower. Here are major reasons why bears have taken over Dalal Street:1.) IT SelloffThe sell-off in IT stocks deepened for a second straight session after ADRs of Infosys and Wipro plunged nearly 10% overnight. In Friday’s trade, the Nifty IT index slumped more than 4%, extending its two-day fall to almost 10%. Heavyweights including TCS, Infosys, Wipro, Live EventsB ...

Blackstone is increasing its investment in the Claude chatbot maker Anthropic, raising its stake to about $1 billion at a valuation of roughly $350 billion, a person familiar with the matter told Reut... ...

The first week of February was a doozy in markets. Anthropic, one of the more outspoken companies in the artificial intelligence space, rattled stocks with the seeming superpowers of its Claude chatbot, prompting a selloff across the software sector with potential obsolescence suddenly knocking at its door. Marta Norton, chief investment strategist at Empower Investments, told Axios that it reminded her of the displacement of BlackBerry when iPhones redefined what a smartphone looked and felt like. Tech ...

Group 1: Market Impact - Billions have been wiped off "shadow banks" due to fears that AI will trigger loan defaults at software companies, with major US lenders losing over $2 billion in value this week [1] - The S&P Business Development Companies index, tracking 44 private credit funds, has lost about $2.2 billion in value since Monday amid fears of a software sector meltdown [5] - Shares of Hercules Capital, managing $5.5 billion, plunged 8.4% during this period, indicating significant market distress [5] Group 2: Company-Specific Developments - Blue Owl Capital, a major player in the private credit sector, saw its share price decline by 6.9%, while its tech-focused fund, Blue Owl Technology Finance, fell by 6.6% [6] - Software stocks have been particularly affected after Anthropic, a $350 billion AI lab, introduced a new legal and accounting tool that threatens existing software services [2] Group 3: Industry Concerns - The shadow banking sector is increasingly viewed as vulnerable, especially following the collapse of two major US companies last year, raising concerns over lax lending standards [7] - UBS predicts that AI disruption could lead to loan defaults rising to 13% in private credit, with 25% to 33% of the private credit universe exposed to AI-related disruptions [7][8] - The introduction of Anthropic's new AI tool, which can perform tasks with minimal prompts, raises alarms about the future of traditional software services [8]

By Kenneth Li NEW YORK, Feb 5 (Reuters) - Thomson Reuters reported higher fourth-quarter revenue on Thursday, boosted by its legal, tax and accounting and corporates businesses, as investors assess the impact of artificial intelligence companies moving into its key markets. The Toronto-based content and technology company also forecast ​its full-year 2026 revenue would rise by between 7.5% and 8%. Wall Street is forecasting revenue growth of 7.7% for the year, LSEG data ‌shows. "We are seeing tangible ...

Labor Market Overview - The labor market is facing challenges as major companies announce significant layoffs, with Amazon planning to cut about 16,000 corporate roles and UPS announcing 30,000 job cuts [1][8] - Dow has reduced its workforce by approximately 4,500 jobs, representing about 12% of its total employees, while Home Depot and Nike have also made smaller cuts [1] AI and Employment Concerns - A Reuters/Ipsos poll indicates that 71% of Americans are concerned that artificial intelligence could permanently replace their jobs [2] - Despite the fears surrounding AI, researchers suggest that the majority of layoffs are driven by federal workforce cuts, economic conditions, and company closures rather than AI [3][5] Layoff Statistics - In 2025, there were 1.2 million layoffs, with AI being blamed for fewer than 55,000 of those, which is about 4.5% [7] - Economic conditions accounted for 253,000 layoffs, while company closures led to another 191,000 job losses [7] AI's Role in the Workplace - Research indicates that when AI is implemented in jobs, it is often used as a tool rather than a replacement for human workers [9] - The success rate of AI-assisted tasks declines significantly for complex work, highlighting the need for human oversight [9] AI-Washing Phenomenon - Analysts suggest that some companies may be "AI-washing" layoffs, using AI as a scapegoat to divert attention from deeper organizational issues [10][11] - The term "AI-washing" refers to the practice of rebranding layoffs as part of an AI strategy to present a more favorable narrative [10] Long-Term Impact of AI - The Yale Budget Lab posits that the transformative effects of AI on the labor market may take years, similar to the historical impacts of computers and the internet [12]

Asian stocks ended mixed on Wednesday as software stocks followed their U.S. peers lower on fears over artificial intelligence effecting future growth. Anthropic, the AI developer known for its Claude chatbot, rolled out new legal tools for its Cowork product, leading investors worldwide to cut exposure to traditional IT services. Gold prices were up nearly 3 percent at $5,080 an ounce in Asian trade and oil extended overnight gains after the U.S. Navy shot down an Iranian drone headed toward an aircraft c ...

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]

Group 1 - The core focus of the news is the significant funding round for AI company Anthropic, which is expected to raise $20 billion, potentially valuing it at $350 billion, thus impacting cryptocurrency miners positively [2][5]. - The CoinShares Valkyrie Bitcoin Miners ETF (WGMI), which has nearly $342 million in assets under management, is positioned to benefit from the increasing intersection of AI and cryptocurrency mining [3][4]. - The enthusiasm from investors for AI, as demonstrated by the funding for Anthropic, suggests a positive outlook for companies in the AI and high-performance computing sectors, which could drive demand for services from WGMI's holdings [7][8]. Group 2 - Major tech companies like Microsoft and Nvidia have previously committed substantial investments of $10 billion and $5 billion, respectively, into Anthropic, indicating strong investor confidence in leading AI firms [6]. - The active management of the WGMI ETF allows for quicker adjustments to capitalize on AI and high-performance computing opportunities compared to index-based ETFs, enhancing its potential for growth [8].