IT stocks: The sentiment around IT stocks seems to be shifting, as visible in the over 1% jump in the technology gauge of the Indian stock market. The Nifty IT index extended its rebound on Tuesday, February 17, showing early signs of a trend reversal after last week’s sharp selloff.
Investors bought the dip following a ₹4.86 lakh-crore erosion in market capitalisation during the last nine sessions, beginning February 4, spooked by fears that new artificial intelligence (AI) tools like Anthropic are likely to put pressure on the traditional headcount-based outsourcing model.
Investors feared that in the coming quarters, AI adoption could create headwinds for deal wins, potentially impacting topline, making close monitoring of deal flow essential to assess its real impact.
However, the two latest developments — Infosys collaboration with Anthropic and AI Summit 2026 — have injected fresh confidence in the IT stocks, with AI-fuelled fears seeming overdone.
According to a Bloomberg report, analysts at HSBC Holdings Plc and JPMorgan Chase & Co. had said that Indian IT firms stand to gain from more customers requiring help integrating artificial intelligence into their operations.
Infosys’ AI deal with Anthropic
IT major Infosys today announced a strategic collaboration with Anthropic to develop and deliver advanced enterprise AI solutions to companies across telecommunications, financial services, manufacturing, and software development.
At its core, the collaboration integrates Anthropic’s Claude models, including Claude Code, with Infosys Topaz AI offerings to help enterprises automate complex workflows, accelerate software delivery, and adopt AI with the governance and transparency that regulated industries require.
This collaboration is being viewed as a shift in the IT sector’s AI strategy. Investors responded positively to the announcement, as Infosys share price gained 2%, reflecting confidence that credible AI partnerships can support medium-term deal momentum and margin stability.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “This development is encouraging, as it suggests that next‑generation AI applications are unlikely to disrupt Indian IT companies’ business models to the extent initially feared. Instead, these solutions are expected to be incorporated into both existing and new projects, which should help ease concerns around long‑term business sustainability.”
That said, some uncertainties persist — particularly regarding how deal sizes and pricing may evolve, and the net impact on margins once employee‑cost efficiencies and productivity gains are balanced out.
“While the sector’s outlook for FY27-28 appears muted compared with the strong performance of the past 2–3 years, this is getting reflected in current subdued valuations. At the same time, the environment is offering opportunities for long‑term investors to re‑enter the space, as more clarity is likely to emerge over the short to medium term,” he opined.
Harshal Dasani, Business Head at INVasset PMS, said that the significance of Infosys-Anthropic collaboration lies less in the headline and more in the timing.
Indian IT firms are grappling with muted discretionary spending and sub-5% revenue growth guidance across large players for FY26. In that backdrop, deeper alignment with frontier AI model providers strengthens Infosys’ positioning in high-value transformation deals rather than commoditised services, he said.
AI Summit 2026 booster
Meanwhile, as New Delhi hosts the AI Summit (February 16 to February 19), analysts believe it is marking a defining shift from experimentation to operationalisation.
The real conversation is no longer about access to models or compute, but about embedding AI into core industry workflows at scale, said Aman Singh, Co-founder, S45.
The broader takeaway from the Summit is clear: India’s AI opportunity will be realised not through pilots, but through disciplined deployment into the economic rails that power growth, he added.
Market veteran Sunil Subramaniam had yesterday told Mint that as days progress, Indian IT companies will be a major part of the AI revolution, as they adapt their business models to the evolving conditions. He advised keeping an eye on the IT summit in Delhi this week for further cues.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
