The sharp fall in IT stocks pushed the Nifty IT index down more than 2%, even as benchmark indices Sensex and Nifty surged nearly 1% each on Iran-US ceasefire hopes.
TCS Q4 Results
TCS on Thursday reported a 12% year-on-year (YoY) growth in its consolidated net profit at Rs 13,718 crore in the fourth quarter. Revenue from operations, meanwhile, rose 10% YoY to Rs 70,698 crore. Along with the Q4 results, the company announced a final dividend of Rs 31 per equity share.Jefferies maintained its ‘Underperform’ rating on TCS, saying there is “nothing to cheer”. The brokerage set a target price of Rs 2,275 (12% downside) and noted limited signs of a meaningful pickup in demand. Nomura and Nuvama, however, reiterated their ‘Buy’ calls and raised target prices to Rs 2,930 apiece (13% upside) and Rs 3,350 apiece (29% upside), respectively.
Fresh AI worries
The IT stocks have seen a major decline this year so far, with the sharp selloff intensifying in February after Anthropic launched plug-ins for its Claude Cowork agent, which could automate tasks across legal, sales, marketing and data analysis departments. Some analysts sounded the alarm on the need for these IT service companies to gradually reduce staff as cheaper and faster AI takes over.
Meta recently unveiled Muse Spark, the first model from its newly formed Meta Superintelligence Labs. “It will power a smarter and faster Meta AI, and over time unlock new features that cite recommendations and content people share across Instagram, Facebook, and Threads,” the company said.Also, Anthropic has released a preview of its new model, Mythos, which is stronger than earlier models like Claude Opus on coding and security benchmarks. Instead of a full public release, Anthropic is rolling it out in a controlled way through Project Glasswing, with a closed group of partners, including AWS, Apple, Broadcom, Google, JPMorgan, Microsoft and NVIDIA. “Mythos builds on big gains in capabilities on Opus, which, released in Feb’26, sent most tech/SaaS stocks tumbling down. While this release may not have the same impact on stocks, it further expands the list of things AI can do better than humans – coding, ERP, and now cybersecurity,” Motilal Oswal Financial Services said. The rising capabilities of artificial intelligence continue to spook investors.
Infosys, Coforge, TCS and Mphasis shares dropped more than 3%, while Persistent Systems, HCL Technologies and LTI Mindtree shares were down nearly 3% each. Tech Mahindra shares fell over 2%, while Wipro was down 1% even after announcing that its board will consider a buyback of shares on April 16.
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