TCS

March 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND SWISSPORT EXTEND STRATEGIC PARTNERSHIP TO ACCELERATE AI-LED TRANSFORMATION

• FIVE-YEAR AGREEMENT FOR DIGITAL INNOVATION ACROSS SWISSPORT'S GLOBAL AVIATION SERVICES

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;;))

March 19 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND ABB STRENGTHEN STRATEGIC IT, AI, AND ENGINEERING PARTNERSHIP

Source text: ID:nBSEbyfN23

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;;))

March 18 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND PEARSON PARTNER TO ACCELERATE AI-POWERED LEARNING FOR GLOBAL INDUSTRIES

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))

March 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS LAUNCHES RAPID OUTCOME AI PLATFORM POWERED BY NVIDIA

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;;))

March 9 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• LAUNCHES GEMINI EXPERIENCE CENTER IN THE US

• CO AND GOOGLE CLOUD TO HAVE 13 GEMINI EXPERIENCE CENTERS GLOBALLY BY END-2026

Source text: ID:nNSE2yVTbF

Further company coverage: TCS.NS

((Reutersbriefs@thomsonreuters.com;))

By Bharath Rajeswaran

March 6 (Reuters) - Foreign outflows from India's information technology stocks hit a seven-month high in February, on worries that artificial intelligence-led disruption could squeeze earnings.

Foreign portfolio investors sold IT stocks worth 169.49 billion rupees ($1.85 billion) for the month. That triggered a 19.5% drop in the IT index .NIFTYIT, its worst monthly performance since September 2008, when the global financial crisis upended equity markets, National Securities Depository (NSDL) data showed on Friday.

The 10 constituents of the index lost about $62.8 billion in market capitalisation in February after U.S. firms such as Anthropic and Palantir unveiled key updates in AI automation. Last year, FPIs offloaded a record 750 billion rupees ($8.18 billion) of IT stocks on weaker earnings and softer client spending.

"The IT sector is facing multiple headwinds, particularly from the rapid advancement of AI tools," said Piyush Gupta, fund manager at AlphaGrep Investment Management.

Constructive collaborations between Indian IT firms and global AI leaders, such as the strategic partnership between Infosys and Anthropic, and improvement in earnings in the sector will be crucial to restore FPI interest in the sector, according to three analysts.

Yet, February was not a one-way risk-off story. FPIs rotated aggressively into other pockets of the market, lifting overall inflows to 226.15 billion rupees, the highest in 17 months since September 2024.

The rebound in broader foreign appetite was fueled by improving corporate earnings and easing trade tensions after India sealed a key trade deal with the European Union and an interim framework for an agreement with the U.S.

Sectors such as capital goods, financials, metals, and energy drew strong foreign buying, supported by improving earnings despite a one-time hit from new labour codes.

AlphaGrep's Gupta said that while sturdier earnings and trade progress help the long game, the FPI comeback is likely to be gradual, highly sensitive to geopolitics and external shocks.

That fragility is already showing.

FPIs net sold 175.70 billion rupees of shares in just four sessions in March as the escalating U.S.-Israeli war with Iran spiked oil prices and squeezed global risk appetite.

($1 = 91.6750 indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Harikrishnan Nair)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

March 5 (Reuters) -

• TCS IS IN 'ADVANCED' TALKS FOR MORE AI DATA CENTERS IN INDIA - BLOOMBERG NEWS

Source text: https://tinyurl.com/2p2naukv

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Una Galani

HONG KONG, March 4 (Reuters Breakingviews) - Is the global selloff in enterprise software and services stocks an overreaction? Maybe not in India. New tools released by Anthropic point towards increasing automation of work that "once required armies of consultants spending years mapping workflows", according to the owner of Claude large language models. The stakes are higher for the world's fourth-largest economy, where a reduction of IT services exports by Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and others or a cut in the size of foreign firms' global capability centres could upend the macroeconomic stability the country has enjoyed.

Providing services to global companies including JPMorgan JPM.N, Goldman Sachs GS.N and Exxon Mobil XOM.N created massive wealth, spurred the rise of major cities like Hyderabad and Bengaluru and created a wall of money that has propelled the stock market, property prices and well-heeled Indians' spending power. Moreover, it also generates foreign exchange earnings that help slow the depreciation of the Indian rupee, which, in turn, keeps a check on imported inflation for the energy-hungry country.

An analysis of Reserve Bank of India data by Samiran Chakraborty, an economist at Citigroup, is sobering. It concludes growth in India's exports of software and other services has, in the recent past, more than offset the widening trade deficit in goods. With further support from remittances of Indians overseas, the current account deficit fell to 0.7% of GDP in the fiscal year to the end of March 2025.

In a scenario of no growth in software exports in fiscal year 2027, Chakraborty estimates most of India's projected surplus in services, roughly $20 billion, would be wiped out. That would weigh on an already weak rupee: in 2025, it declined 5% against the U.S. dollar and was the worst-performing major currency in Asia.

True, India's software services exports have grown 9.5% annually over the past decade – three times the rate of its goods exports – and Citi forecasts 8% for the year to March 2027. What's more, IT firms typically have contracts that last between three to seven years, and so AI disruption – in this case, clients renegotiating terms – ought to be gradual.

But there is widespread fear that automation tools like those from Anthropic could hollow out these industries faster. This fear is reflected in the 20% drop in India's benchmark Nifty IT index since the start of the year. Several executives at top global firms have also told Breakingviews they expect to have fewer people working in their India-based global capability centres in the coming years. Given India's heavy reliance on services in its external accounts, the software apocalypse spells trouble for returns on all rupee-denominated assets. That justifies selling the rumour and buying the fact.

Follow Una Galani on Linkedin and X.

CONTEXT NEWS

India’s Nifty IT Index has fallen 20% so far this year. The Indian rupee has declined 1.3% against the U.S. dollar over the same period.

(Editing by Robyn Mak; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on GALANI/ una.galani@thomsonreuters.com))

March 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - EXPANDS PARTNERSHIP WITH ZSCALER FOR AI-POWERED SOLUTION

• TCS - ANNOUNCED LAUNCH OF TCS WORKSPACE EXPERIENCE STUDIO ENGINEERED WITH ZSCALER DIGITAL EXPERIENCE

Source text: ID:nBSE8cC9Jt

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))

By Haripriya Suresh

MUMBAI, Feb 26 (Reuters) - Fears that new artificial intelligence tools could replace large IT services firms are "overblown" as clients still need help deploying and scaling the technology, Babak Hodjat, chief AI officer at Cognizant CTSH.O, told Reuters in an interview.

Automated AI tools from startups such as Anthropic have stirred concerns about disruption in the business models of software and services firms globally, including India's traditionally labour-intensive IT services industry.

Enterprises are far from being able to rely on a single, all-purpose AI agent, said Hodjat, adding that most clients still need help engineering, integrating, and governing AI systems.

"That mapping is our job, it does not come just automatically out of the box," said Hodjat, whose work helped power Apple's AAPL.O Siri voice assistant.

Nasdaq-listed Cognizant, which has more than 70% of its workforce operating out of India, forecast annual revenue above Wall Street estimates on the back of strong demand as businesses adopt AI into their workflows.

Rivals Tata Consultancy Services TCS.NS and Wipro WIPR.NS have also maintained that rapid AI adoption will boost, rather than shrink, demand for software service providers.

Hodjat's vote of confidence in the role of services companies comes despite AI-related job cuts already underway.

Shipping and logistics management software company WiseTech Global WTC.AX said it would lay off nearly a third of its workforce as it integrates AI into its customer software and internal operations. TCS announced 12,000 job cuts last year, but has since denied to local media that the layoffs were AI-related.

Cognizant, which generates about 30% of its code through AI and aims to reach 50%, is not worried about automation eliminating entry-level jobs. CEO Ravi Kumar S said during the company's earnings call earlier this month that it hired 25,000 fresh graduates in 2025, and expects to exceed that in 2026.

Almost all of Cognizant's clients have already tried to work with AI agents, Hodjat said, but have acknowledged that they need us to deploy it within their systems for returns.

(Reporting by Haripriya Suresh in Mumbai; Editing by Janane Venkatraman)

((haripriya.suresh@thomsonreuters.com))

By Bharath Rajeswaran

Feb 25 (Reuters) - Indian shares have lagged their Asian and emerging market peers so far in February, pressured by a $68.6 billion rout in the market value of information technology stocks, as investors fretted over disruptions linked to artificial intelligence.

The Nifty 50 index .NSEI has risen 0.4% so far this month, while the Sensex .BSESN edged 0.1% lower, underperforming both the MSCI Asia ex-Japan and MSCI Emerging Markets indexes.

The 10 Nifty IT constituents .NIFTYIT have lost a combined $68.6 billion in market capitalisation in February, as of the last close, with the index down 21% and on course for its worst monthly performance in nearly 23 years.

All 10 index members have fallen between 16.8% and 27% in February to date. Coforge COFO.NS is the steepest percentage decliner, down 26.8%, while Tata Consultancy Services TCS.NS and Infosys INFY.NS have led the value erosion, losing about $21.9 billion and $16.3 billion in market value, respectively.

The selloff reflects growing concerns that rapidly advancing automation tools could compress project timelines and disrupt the labour-intensive delivery model underpinning India's roughly $300-billion IT services industry.

Investors have zeroed in on the AI-driven automation push from U.S. firms such as Anthropic and Palantir, heightening concerns over faster project execution, pricing pressure and reduced billable hours.

Brokerages warn the Indian IT sector could face further pressure if AI starts to eat into application services revenue, which typically accounts for 40% to 70% of total revenue for these companies.

"There are no easy answers to whether AI eventually renders IT services obsolete over the long term," said analysts led by Abhishek Pathak of Motilal Oswal.

"The narrative that AI is coming for not just IT but large swathes of the economy could be too strong to shake, at least in the short term," Motilal Oswal analysts said.

A slowdown or contraction in India's IT sector, whether through layoffs or reduced hiring, can have immediate consequences on both residential and commercial real estate demand. The Nifty Realty index .NIFTYREAL has risen roughly 2% in February, following a nearly 18% decline over the past three months.

Concerns over Indian IT companies have also accelerated foreign selling in the sector in 2026 so far.

While FPIs have turned buyers of Indian stocks in February on an overall basis, they pulled out about 110 billion rupees ($1.21 billion) from IT stocks in the first half of February, following a record 750 billion rupees of net selling in 2025.

($1 = 90.8980 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

MUMBAI, Feb 24 (Reuters) - India's technology sector is expected to grow 6.1% this fiscal year, driven by artificial intelligence-led services as well as business at global capacity centres, an industry body said on Tuesday.

Nasscom expects the sector's revenue to rise past $300 billion in fiscal year 2026.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Mrigank Dhaniwala)

((mailto: saiishwarbharath.b@thomsonreuters.com;))

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Shritama Bose and Ujjaini Dutta

NEW DELHI, Feb 23 (Reuters Breakingviews) - The dissonance surrounding India's artificial intelligence dreams came alive at the AI Impact Summit. The five-day confab in New Delhi last week hosted global A-listers from OpenAI CEO Sam Altman to Alphabet's GOOGL.O Sundar Pichai and attracted investment pledges of over $250 billion, including from Reliance Industries RELI.NS and the Adani Group. But the euphoria barely concealed the country's simmering anxieties around the fast-moving technology.

The 500,000 visitors at the shindig focusing on "bridging the global AI divide" included delegates from 118 countries and swarms of college students attending sessions on everything from the creator economy to AI in agriculture and defence. On Saturday, 88 nations and international groupings endorsed the Delhi Declaration, which commits to democratising AI resources.

Yet even as crowds during the week cheered India’s homegrown government-backed answer to OpenAI and DeepSeek, Sarvam AI’s demonstrations of its "extremely frugal" large language models for Indic languages underscored the steep challenge facing most countries seeking to preserve AI sovereignty. Without powerful domestic alternatives, attendees warned, India risks becoming a digital colony of the United States and China.

Also lacking was substantial discussion on job losses from AI. India already struggles to create the 8 million roles it needs each year to absorb new entrants into the workforce. Its vast IT software services industry and role as the world's back office places it at the sharp end of disruption. V Anantha Nageswaran, India's chief economic advisor, at least hinted at the scale of the looming challenge, calling it "a stress test of our state capacity" - a remark that resonates in a country known for weak policy implementation.

The summit also failed to build consensus on who should shoulder the gargantuan task of reskilling a workforce whose future already fuels frequent primetime television debates. Prime Minister Narendra Modi said reskilling must become a mass movement. In private, executives cast it as the government’s problem. Past precedent suggests India Inc will ultimately be forced to share the burden.

The lack of urgency perhaps stems from knowledge that multi-year contracts with global firms will buy outsourcers like Tata Consultancy Services TCS.NS, among India's largest employers, a few years to adapt. In time AI might create more jobs than it destroys, as Reliance's Chair Mukesh Ambani vowed to prove. But that's cold comfort for the swelling ranks of Indian workers caught up in the churn. For now, India has missed a chance to set the agenda for the Global South on this important topic. Hubris was poor cover.

Follow Shritama Bose on LinkedIn and X.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

The AI Impact Summit 2026 was held at New Delhi from February 16 to 20. The summit attracted 500,000 visitors, 20 heads of government and delegates from 118 countries, India's Ministry of Electronics and Information Technology said on February 20.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the authors, Reuters customers can click on BOSE/ shritama.bose@thomsonreuters.com and DUTTA/ ujjaini.dutta@thomsonreuters.com))

Feb 20 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• CO AND CISCO LAUNCH CENTER OF EXCELLENCE FOR AUTONOMOUS ENTERPRISE

Source text: ID:nNSE31wRGp

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;;))

NEW DELHI, Feb 19 (Reuters) - OpenAI will become the first customer of India's Tata Consultancy Services' data center business, beginning with 100 megawatts of capacity, the parent firm of ChatGPT said on Thursday.

Separately, Tata Group is planning to deploy ChatGPT Enterprise across the company over the next several years, starting with hundreds of thousands of employees, OpenAI added.

(Reporting by Munsif Vengattil in New Delhi; Editing by Raju Gopalakrishnan)

((munsif.vengattil@thomsonreuters.com;))

Feb 17 (Reuters) - NVIDIA Corp NVDA.O:

• NVIDIA: TECH MAHINDRA DEPLOYING LARGE TELCO MODEL TO POWER AUTONOMOUS NETWORK OPERATIONS USING NVIDIA NIM

• NVIDIA: PERSISTENT ACCELERATES AI‑DRIVEN MOLECULAR DISCOVERY WITH NVIDIA BIONEMO AND NEMO AGENT TOOLKIT

• NVIDIA: INFOSYS BUILDS AN ENTERPRISE-GRADE CODING SMALL LANGUAGE MODEL WITH NVIDIA AI ENTERPRISE

• NVIDIA: RELIANCE NEW ENERGY EXPANDS COLLABORATION WITH CO & SIEMENS BY COMBINING SIEMENS’ DIGITAL TWIN TECHNOLOGY WITH CO'S OMNIVERSE LIBRARIES

• NVIDIA: COLLABORATING WITH NEXT‑GENERATION CLOUD PROVIDERS YOTTA, L&T AND E2E NETWORKS

• NVIDIA: DEVELOPERS BUILDING SOVEREIGN AI SYSTEMS CAN ACCESS NVIDIA NEMOTRON & NEMO TODAY

• NVIDIA: TATA CONSULTING ENGINEERS LAUNCHES COGNITIVE TWIN PLATFORM, BUILT ON NVIDIA OMNIVERSE

• NVIDIA: TO OFFER ANUSANDHAN NATIONAL RESEARCH FOUNDATION GRANTEE INSTITUTIONS COMPLIMENTARY ACCESS TO NVIDIA AI ENTERPRISE SOFTWARE

• NVIDIA: PARTNERING WITH VENTURE CAPITAL FIRMS INCLUDING PEAK XV, ELEVATION CAPITAL, ACCEL INDIA & OTHERS TO IDENTIFY & FUND AI STARTUPS

Source text: [ID:]

Further company coverage: NVDA.O

((Reuters.Briefs@thomsonreuters.com;))

Adds background, more details

BENGALURU, Feb 17 (Reuters) - India's No.2 software-services exporter Infosys INFY.NS said on Tuesday that artificial intelligence services accounted for 5.5% of its revenue in the December quarter, marking the first time the company has broken out its AI business.

The disclosure comes as India's $283 billion IT industry faces rising investor concerns about AI's potential to disrupt traditional, labour‑intensive outsourcing models.

"It is growing at a robust pace. It is extremely dynamic and working well with our clients," CEO Salil Parekh said, adding that its AI offerings include autonomous agents and embedded systems for physical devices and hardware.

Parekh has previously said the company is working on 4,600 AI projects and has built more than 500 agents.

India's software-services sector has come under scrutiny in recent weeks, with IT stocks suffering their worst week in more than 10 months amid concerns that Anthropic's AI tools could accelerate disruption. The sell-off has wiped about $40 billion off the industry's market capitalisation so far in February.

Infosys posted third‑quarter revenue of 454.79 billion rupees ($5.01 billion). Larger rival Tata Consultancy Services TCS.NS has said its AI services generate about $1.8 billion annually, or roughly 5.8% of total revenue.

Infosys on Tuesday also unveiled a collaboration with Anthropic to set up a dedicated center to build and deploy AI agents, starting with telecom and expanding into financial services, manufacturing, and software development.

Meanwhile, India is hosting the AI Impact Summit, an event showcasing the country's technology ambitions, in New Delhi from February 16-20.

($1 = 90.7510 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B in Bengaluru; Editing by Mrigank Dhaniwala, Dhanya Skariachan and Rashmi Aich)

((haripriya.suresh@thomsonreuters.com))

Feb 16 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND AMD TO BRING STATE-OF-ART 'HELIOS' RACK-SCALE AI ARCHITECTURE TO INDIA

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;;))

Updates throughout

By Vivek Kumar M and Nandan Mandayam

Feb 13 (Reuters) - Indian IT shares logged their worst week in more than 10 months on Friday, extending a rout driven by fears of disruption from artificial intelligence tools that wiped about $50 billion off the sector's market capitalisation so far in February.

The launch of a tool by tech startup Anthropic last month triggered a global tech sell-off and intensified concerns that rapid adoption of generative AI could upend India's $283 billion IT services industry.

For the week, the Nifty IT .NIFTYIT slid 8.2%, its steepest drop since April 2025.

Analysts at J.P. Morgan flagged investor concerns that India's IT firms could miss growth targets as AI pushes clients to reallocate spending.

Sat Duhra, portfolio manager at Henderson Far East Income, said IT companies probably haven't done the greatest job in terms of communicating how they can turn AI into an opportunity rather than a threat.

The index fell as much as 5.2% on Friday before paring losses to settle 1.44% lower.

The losses on Friday were led by a 2.1% drop in industry leader Tata Consultancy Services TCS.NS. Infosys INFY.NS declined 1.2% and HCLTech HCLT.NS dropped 1.4%.

Friday's mid-session recovery was largely due to investors "buying the dip" on attractive valuations, Centrum Broking's Piyush Pandey said.

"Investors have largely over-reacted to the threat posed by these AI tools. It is important to note that IT companies remain relevant even in the age of AI, albeit with a leaner headcount."

JP Morgan noted that it's "overly simplistic" to assume that AI can automatically generate enterprise grade software and replace the value IT Services firms create across the cycle.

"IT Services companies remain the plumbers in the tech world, and if enterprise software/SaaS is rewritten on a bespoke basis by agents - it will need significant services plumbing to work in enterprise context and minimise AI slop."

(Reporting by Nandan Mandayam, Vivek Kumar M and Bharath Rajeswaran in Bengaluru, writing by Chandini Monnappa; Editing by Sonia Cheema and Janane Venkatraman)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

** Shares of India's ICICI Bank ICBK.NS rise 1.2% to surpass market capitalisation of Tata Consultancy Services TCS.NS

** IT major now sixth biggest Indian company by market cap after losing two spots in two days; shares down 3.7%

** TCS' market cap drops to 10.13 trillion rupees ($111.92 billion), while that of ICICI Bank rises to 10.18 trillion rupees ($112.47 billion)

** IT bellwether hit by broader sell-off in IT stocks due to fears of AI disruption and fading U.S. rate cut hopes

** Nifty IT index .NIFTYIT down 4.3%

** Reliance Industries RELI.NS, HDFC Bank HDBK.NS and Bharti Airtel BRTI.NS and State Bank of India SBI.NS are the India's top four firms, respectively, in terms of market cap

($1 = 90.5150 Indian rupees)

(Reporting by Vivek Kumar M)

((VivekKumar.M@thomsonreuters.com;))

** State Bank of India SBI.NS becomes fourth-largest Indian company by market capitalisation

** Shares of India's largest lender rise 3.4% on the day, pushing market cap to 10.92 trillion rupees ($120.36 billion), per exchange data

** Pips IT bellwether TCS TCS, which fell 2.5% on Wednesday, taking its market cap to 10.52 trillion rupees

** SBI up 7% this week after upbeat Q3 earnings, while TCS is up 1.5%

** Reliance Industries RELI.NS, HDFC Bank HDBK.NS and Bharti Airtel BRTI.NS are the top three, respectively, in terms of market cap

($1 = 90.7275 Indian rupees)

(Reporting by Vivek Kumar M)

((VivekKumar.M@thomsonreuters.com;))

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

AI LEARNS THE LAW, MARKETS LEARN TO WORRY

Anthropic's new legal tool for Claude AI not only rattled AI-bubble nerves but also cast a shadow over global economies heavily reliant on the export of telecommunications, computer, and information services (ICT), according to Standard Chartered.

For Ireland and India - economies particularly exposed to potential software export slowdown, even a 10% reduction in exports could lower their GDP growth by 1 percentage point each, Standard Chartered said in a note.

"Even a smaller share of the workforce in impacted sectors would translate into significant absolute layoffs for the more populous EM economies like India (where about 5.5 million people are employed in the ICT sector)," said Madhur Jha, global economist and head of thematic research at Standard Chartered.

Top software exporters Tata Consultancy Services TCS.NS, Infosys INFY.NS, HCLTech HCLT.NS, and Tech Mahindra TEML.NS lost between 5.8% and 8.1% last week at the peak of the selloff.

U.S. AI developer Anthropic launched plug-ins for its Claude Cowork agent that would automate tasks across legal, sales, marketing and data analysis.

The launch revived fears that increasingly capable AI tools could dent demand for traditional software, compress margins and cost jobs, triggering a deep selloff in global software stocks.

The S&P 500 software and services index .SPLRCIS has fallen 7.5% as of last week and has seen around $1 trillion in market value evaporate since January 28.

(Kanchana Chakravarty)

*****

EARLIER ON LIVE MARKETS:

S&P 500 BACK WITHIN STRIKING DISTANCE OF HIGHS, 7,000 MILESTONE CLICK HERE

POLICY UNCERTAINTY NOT CONFINED TO THE DOLLAR CLICK HERE

AI DIVERGENCE ACCELERATES IN EUROPE, SPOTLIGHT ON SECTOR WINNERS CLICK HERE

U.S. INVESTORS ARE LOOKING BEYOND WALL STREET CLICK HERE

CITI FLAGS CONSOLIDATION RISK AS DISPERSION SURGES CLICK HERE

STOXX EYES FRESH RECORD, M&A MOMENTUM PROVIDES LIFT CLICK HERE

EUROPE BEFORE THE BELL: FUTURES CATCH ASIA RALLY CLICK HERE

JAPAN MARKETS WELCOME CHANCE OF A LONG-STAY PM CLICK HERE

Feb 6 (Reuters) - Indian software exporters shares .NIFTYIT fell about 2% on Friday and were headed for their worst week in over four months, as rapid advances in artificial intelligence deepened worries that high-margin application-services revenues for Indian IT firms could come under pressure.

The sub-index was the biggest sectoral loser on the day, with all 10 constituents trading in the red. Coforge COFO.NS led losses with its 3.8% drop.

TCS TCS.NS and Infosys INFY.NS fell nearly 2% each. Nifty 50 .NSEI was down 0.3%.

The IT index has dropped 6.8% so far this week and was set for its biggest drop since September 2025.

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

Updates levels, adds graphic after paragraph 11

Feb 5 (Reuters) - Rapid advances in artificial intelligence, triggered in part by Anthropic's latest automation push, could structurally erode the IT sector's high-margin application services revenues, creating downside risks to earnings and valuations, analysts warn.

Shares in India's software exporters .NIFTYIT settled 0.6% lower on Thursday, a day after plunging 6% in their worst session for nearly six years, as AI-driven automation from U.S.-based Anthropic and Palantir fuelled fears of compressed project timelines and disruption to the industry's labour-intensive business model.

The weakness has echoed across global IT stocks this week, extending a broader selloff in companies seen as most exposed to potential AI disruption.

"There is more pain ahead for Indian IT," Jefferies said, adding that Anthropic's and Palantir's claims highlight how AI could potentially erode application service revenues for IT firms.

"With application services accounting for 40–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations."

DISRUPTION

Indian IT firms have been ramping up AI investments and re-skilling efforts, even as weak global tech spending, delayed client decision-making and pricing pressure have weighed on the sector. Foreign investors offloaded a record $8.5 billion worth of Indian IT stocks in 2025.

However, some analysts said the sharp selloff may be overdone.

JPMorgan said that while concerns around AI disruption were not without merit, it was illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software.

Domestic brokerage Kotak Institutional Equities described the decline as a case of "plenty of panic over a little flutter".

Among large IT firms, Tata Consultancy Services TCS.NS, Tech Mahindra TEML.NS and LTIMindtree LTIM.NS have higher exposure to application services, which account for about 55%–60% of revenues, while HCL Tech HCLT.NS has the lowest exposure at around 40%.

Their stocks fell between 4% and 7% % on Wednesday, and extended losses on Thursday.

Brokerage Motilal Oswal estimates that 9%-12% of industry revenues could be eliminated over the next four years due to AI-led disruption.

Jefferies expects AI to weigh on IT-sector revenue growth over the next one to two years, arguing that deflation in legacy service-line revenues will more than offset gains from AI-related opportunities.

The IT sub-index has lost 17% since the start of 2025, including Wednesday's selloff, and is on track for its worst week in over four months.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Writing by Chandini Monnappa; Editing by Mark Potter and Louise Heavens)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

.

By Sneha Kumar

Feb 4 (Reuters) - Equities in emerging Asian economies wobbled in afternoon trade on Wednesday as investors sold off technology stocks, while auto and battery makers helped South Korean shares notch a record closing high.

The MSCI gauge of Asian emerging stocks .MIMS00000PUS inched higher after trending in negative territory for much of the Asian session, driven by a 1.6% gain in South Korea's benchmark KOSPI index .KS11.

A global selloff in information technology stocks spilled into Asia after AI firm Anthropic launched workplace productivity tools, raising concerns of disruption across the sector. MKTS/GLOB

The MSCI index of emerging Asia information technology stocks .MIMS0IT00PUS slipped 0.7%. China's CSI Software Services Index .CSI930601 fell 1.8%, while technology giants listed in Hong Kong .HSTECH lost 1%.

India's IT shares .NIFTYIT plunged nearly 7%, with sector heavyweights Infosys INFY.NS and TCS TCS.NS falling between 7% and 8%.

"Software stocks were especially hard hit because Anthropic rolled out new tools for its Cowork product," analysts at Yardeni Research said in a note.

"It is too soon to tell how useful the new tools will be, but investors decided to cut the valuation multiples of software stocks."

In South Korea, the KOSPI index .KS11 extended gains to notch a record closing high. Car makers Hyundai Motor 005380.KS and Kia Corp 000270.KS rose about 2% each, while battery maker LG Energy Solution 373220.KS jumped 3%.

Chipmaker Samsung Electronics 005930.KS gained 1% to post a record close after trading in negative territory for much of the session, while peer SK Hynix 000660.KS slipped 0.8%.

Tech-heavy Taiwan shares .TWII climbed 0.3%. Financials and industrial stocks were among the major gainers, while top contract chipmaker TSMC 2330.TW slipped 0.8%.

Singapore stocks .STI hovered near their all-time highs, propped up by major banks, consumer, and industrial stocks.

Thailand shares .SETI rose 0.5%, while Philippine equities .PSI reversed course to slip 0.4%. Indonesia's Jakarta Composite index .JKSE dipped 0.4%, shedding almost 3% so far this week after last week's nearly 7% decline.

Limiting losses, Barito Pacific BRPT.JK and Chandra Asri Pacific TPIA.JK climbed 5.6% and 2.3%, respectively, after announcing market buybacks amid a market rout.

Regional currencies were largely subdued, with the Thai baht THB=TH gaining the most with a 0.3% rise ahead of the country's general election on February 8.

The South Korean won KRW=KFTC pared losses after the country's vice welfare minister said she hopes the National Pension Service will start issuing foreign-currency bonds by the end of the year.

In India, the rupee INR=INH slipped 0.2%, relinquishing some of the previous session's gains made after a trade deal that cut U.S. tariffs on Indian goods to 18% from 50%.

HIGHLIGHTS:

** Yield on Indonesia's 10-year bonds ID10YT=RR at 6.364%

** Nvidia's Huang dismisses fears AI will replace software tools as stock selloff deepens

** Thailand's ex-PM Abhisit returns to political fray in boost for his party

** KKR, Singtel pay $5.2 billion for full control of data centre operator STT GDC

(Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)

((Sneha.kumar@thomsonreuters.com))

Feb 2 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• JANATA SAHAKARI BANK SELECTS TCS BANCS

• BANKING PLATFORM TO JANATA SAHAKARI BANK'S MODERNIZE CORE AND DIGITAL BANKING

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))

Jan 27 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TO ADD 1,600 JOBS WITH NEW BRAZIL CAMPUS

• INVESTS $37 MILLION IN NEW LONDRINA FACILITY

• CAMPUS IN BRAZIL EXPECTED TO COMPLETE BY 2027

Source text: ID:nNSE3Q46zV

Further company coverage: TCS.NS

((Reutersbriefs@thomsonreuters.com;))

Jan 22 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• KALMAR PARTNERS WITH TCS FOR STRATEGIC AI-POWERED TRANSFORMATION OF ITS ENTERPRISE IT LANDSCAPE

Source text: ID:nnAZN4S2KZX

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))

Jan 21 (Reuters) - India's Tata Communications TATA.NS reported its first profit rise in three quarters on Wednesday, on strong demand for its cloud services and connectivity solutions.

The company also picked Ganesh Lakshminarayanan as managing director and chief executive officer-designate. He will be appointed once regulatory approvals are in place.

Lakshminarayanan is managing director and group vice president for ServiceNow in India and the South Asian Association for Regional Cooperation (SAARC) region, the firm said in a statement.

The Mumbai-based Tata Communications, which offers data connections and cybersecurity to enterprises, said its profit jumped 54.3% on-year to 3.65 billion rupees ($39.8 million) for the three months ended December 31.

Revenue from its mainstay data services business jumped 9.4% to 53.8 billion rupees, boosting overall revenue 6.7% to 61.89 billion rupees.

Tata Communications aims to grow its data business revenue to 280 billion rupees by fiscal year 2028, driven by digital services that it expects will boost future revenue and margins.

It has been reducing its reliance on legacy network services, which continue to face pricing pressure and operational disruptions, while investing in digital infrastructure businesses such as cloud connectivity, cybersecurity, Internet of Things and communication platforms.

The firm also recorded a provision of 609.8 million rupees in the quarter after India notified new labour codes, the country's biggest overhaul of workers' laws in decades.

The codes require employee wages to be at least 50% of cost-to-company, and benefits like provident funds and gratuity to be determined based on wages.

Implemented in November, the new codes have dragged the profit of Indian big tech firms, including Wipro WIPR.NS, TCS TCS.NS and HCLTech HCLT.NS.

($1 = 91.6910 Indian rupees)

(Reporting by Aleef Jahan and Mridula Kumar in Bengaluru; Editing by Harikrishnan Nair)

((aleefjahan.cs@thomsonreuters.com))

Jan 19 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS - TCS NETHERLANDS B.V. INCORPORATES SUBSIDIARY IN SAUDI ARABIA

Source text: ID:nBSE8zXbjt

Further company coverage: TCS.NS

((Reuters.Briefs@thomsonreuters.com;))