Nifty IT Index Crash: Why Anthropic Shock and US Rate Fears Wiped Out ₹1.3 Lakh Crore

Synopsis: The Nifty IT Index plummeted 5.5% on February 12, 2026, as a “perfect storm” of Anthropic’s newly launched Claude 4.6 “agent teams” and stronger-than-expected US jobs data decimated investor sentiment. The dual blow triggered a massive ₹1.3 Lakh Crore wipeout in market cap, as markets price in a structural threat to the traditional headcount-based IT delivery model and a “higher-for-longer” interest rate regime.

On February 12, 2026, the Indian technology sector faced its most brutal sell-off since the pandemic, with the Nifty IT Index crashing 5.5% to settle at 33,471. Market heavyweights Tech Mahindra, Infosys, and TCS led the carnage, each plunging nearly 6% and hitting fresh 52-week lows. The bloodbath on Dalal Street mirrors a global tech rout dubbed the “SaaSpocalypse,” fueled by fears that generative AI has moved from being a “copilot” to a direct replacement for human-intensive IT services.

Adding to the sector’s woes, fresh US Labor Department data showed unexpectedly strong job growth, effectively killing hopes for a US Federal Reserve rate cut in March. For Indian IT firms, which derive over 80% of their revenue from Western markets, this suggests that discretionary spending will remain frozen as borrowing costs stay elevated.

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Why did Nifty IT index fall today?

The primary catalyst is the “Anthropic Shock.” The AI startup recently launched Claude 4.6, featuring “agent teams” capable of automating end-to-end professional workflows in legal, coding, and finance. This directly challenges the “pyramid model” of Indian IT, where thousands of junior engineers handle routine maintenance and testing—tasks that these new AI agents can now execute with 90%+ accuracy.

Simultaneously, the US 10-year Treasury yield spiked following robust employment data. This has triggered aggressive FII selling, as higher rates make high-PE growth stocks like Infosys and TCS less attractive. The “1-2-1” rule of the market was in full display today: one massive global trigger, two localized macro fears, and one systemic exit by institutional players.

IT Sector Meltdown: Q3 FY26 Market Impact

IT Giant	Intraday Fall (%)	Market Cap Loss (₹ Cr)	Current Status
Tech Mahindra	6.40% ↓	₹11,200 Cr	52-Week Low
Infosys	5.97% ↓	₹38,500 Cr	Multi-year Support
TCS	5.77% ↓	₹54,000 Cr	Below ₹10L Cr Cap

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The “Analyst Consensus” on the IT Crash

Brokerages are divided on whether this is a “buying opportunity” or the beginning of a long-term structural decline for legacy players.

• Geojit Financial: Suggests that the “headcount-linked growth model” is dead, and firms failing to pivot to AI-agentic workflows will see permanent margin compression of 200-400 bps.
• Kotak Institutional Equities: Notes that while the reaction is severe, the integration of AI into legacy enterprise stacks still requires human context, which may protect Tier-1 firms in the medium term.
• Technical View: Analysts warn that the Nifty IT Index has broken key support at 35,000, and any “dead cat bounce” should be used by the Aam Aadmi to reduce exposure until the index stabilizes.

Also Read: SML Isuzu (SML Mahindra) Share Price Hits 10% Upper Circuit: Why Q3 Profits Surged 3,200%

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The Bottom Line

Today’s ₹1.3 Lakh Crore wipeout confirms that markets are no longer treating AI as a buzzword but as a structural threat to the ₹280 Billion Indian IT industry. Unless companies like TCS and Wipro convincingly pivot to “outcome-based billing,” the era of easy double-digit returns from IT stocks may be over.