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TCS, Infosys, Coforge slide up to 4% despite market rally: Here’s why IT stocks are falling today
4 min read | Updated on April 10, 2026, 14:45 IST
SUMMARY
TCS, Infosys and other IT stocks saw strong selling pressure today after Anthropic launched its new AI model Mythos, which focuses on cybersecurity and deep code analysis. TCS's encouraging Q4 earnings failed to impress the investors, as the NIFTY IT index declined over 2% today.
Meta Platforms has also launched its AI model Muse Spark.
TCS, Infosys, and HCL Technologies were among the top NIFTY50 losers today despite a broad-based recovery in the domestic markets. NIFTY50 and SENSEX rebounded to trade nearly 1% higher today, supported by gains in banking and financial stocks.
Meanwhile, the NIFTY IT index is trading 2.4% lower as of 12:30 pm, as most IT stocks saw a sharp decline today despite upbeat Q4 earnings from TCS. Infosys, TCS and HCL Technologies shares are down between 2.5% and 3.3%.
Why are IT stocks down today?
This new AI model has advanced cybersecurity capabilities and reportedly outperforms both human experts and existing automated tools in identifying cybersecurity flaws and fixing them. The company has rolled out access to its latest AI model under a controlled programme, Project Glasswing. The early access has been given to companies like Apple, Broadcom, NVIDIA, Google, JPMorgan Chase, Microsoft and Amazon Web Services with $100 million in usage credits, allowing these companies to test the model in controlled environments, particularly for cybersecurity applications.
This new Anthropic AI model has made investors cautious towards the IT stocks. As a result, most of the IT stocks are down 2 to 4% today. Earlier this year, the NIFTY IT index tumbled nearly 20% in February 2026 after Anthropic launched multiple AI models that experts believe could automate traditional IT and managed services work and significantly cut down on new IT deals.
IT stocks tumble amid fear of AI-driven disruption
| Stock name | CMP | Down from 52-week high | 3-year return* |
|---|---|---|---|
| TCS | ₹2,511 (-2.9%) | ▼30.7% | -23.02% |
| Infosys | ₹1,292 (-2.9%) | ▼25.1% | -9.44% |
| HCL Tech | ₹1,439 (-1.7%) | ▼19.1% | +30.41% |
| Wipro | ₹203 (+0.3%) | ▼25.4% | +9.18% |
| Tech Mahindra | ₹1,435 (-1.7%) | ▼22.5% | +29.77% |
| Coforge | ₹1,224 (-3.2%) | ▼38.4% | +50.97% |
| LTIMindtree | ₹1,435 (-1.7%) | ▼30.1% | -6.14% |
| Persistent Systems | ₹1,435 (-1.7%) | ▼17.9% | +373.8% |
| Mphasis | ₹1,435 (-1.7%) | ▼22.9% | +29.12% |
| NIFTY IT | 30,929 (-2.4%) | ▼23.3% | +6.3% |
Mixed reaction to TCS Q4 earnings
IT major TCS reported upbeat quarterly earnings, beating the market estimates. TCS reported 29% QoQ and 12.2% YoY rise in consolidated net profit of ₹13,718 crore, while its revenue from operations rose 5.4% QoQ and 9.6% YoY to ₹70,698 crore. The company reported a total contract value (TCV) of $12 billion for the March quarter, with three mega deals signed. Annualised AI revenue crossed $2.3 billion during the quarter, driven by rising enterprise adoption of AI solutions.
Despite strong earnings, TCS shares tumbled 3.3% intraday on NSE with a day low of ₹2,501.1 per share as TCS earnings were not enough to offset the impact of broader slowdown and AI disruption fear in the IT sector.
In terms of dollar revenue, TCS reported its first full-year revenue decline in dollar terms since its 2004 listing. TCS's full-year revenue in dollar terms stood at $30.08 billion, down 0.5%, while net profit rose 3.4% to $5.94 billion. However, in rupee terms, the revenue saw 4.6% rise on a yearly basis to ₹2,67,021 crore, largely supported by Indian rupee depreciation. Some experts believe that the rise in AI dominance is forcing some clients to delay their new IT contract. Hence, impacting the new deal wins as well as indirectly, AI is testing the IT sector’s core services model.
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