Infosys, HCLTech, TCS, other IT stocks soar up to 6%; Nifty IT rallies 5% as global AI slowdown calls boost sentiment
Indian IT stocks rallied up to 6% after calls from Anthropic and OpenAI leaders for a slower pace of AI development eased fears of disruption from AI. Infosys, HCLTech, LTIMindtree and Mphasis gained around 6%, while TCS and Tech Mahindra rose over 5%, pushing the Nifty IT index up about 5%.
Indian IT stocks experienced a significant surge on Tuesday, with shares of Infosys, HCLTech, TCS, and other major players soaring up to 6%. The Nifty IT index also rallied by 5% as global concerns over the pace of artificial intelligence development boosted market sentiment. AI leaders from OpenAI and Anthropic, including Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman, called for a slowdown in AI advancement to manage risks and protect humanity.
This led to a cautious optimism among investors, with some experts suggesting that India could serve as a "anti-AI" diversifier due to its potential to attract foreign investment seeking to spread their portfolios amidst potential regulatory changes in the sector. However, caution remains warranted as concerns about potential interest rate hikes by the U.S. Federal Reserve, driven by rising oil prices and inflationary pressures, may negatively impact IT investors reliant on revenue from U.S. clients.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
