TCS

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

• TPG TERABYTE ALLOTTED SHARES OF HYPERVAULT, HOLDS 49% STAKE OF HYPERVAULT

• HYPERVAULT RECEIVED 1.99 BILLION RUPEES FROM TPG TERABYTE

Source text: ID:nnAZN4SKA8F

Further company coverage: TCS.NS

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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)

(([email protected]; +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

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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/ [email protected]))

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

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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)

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Feb 25 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• TCS AND GITLAB PARTNER

Further company coverage: TCS.NS

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Feb 24 (Reuters) - Indian salt-to-software Tata conglomerate's executive chairman N Chandrasekaran has sought a deferment of discussion on his reappointment, after disagreements broke out in the board meeting of Tata Sons on Tuesday, the Economic Times reported, citing people familiar with the matter.

Tata Sons did not immediately respond to a Reuters request for comment.

(Reporting by Chandini Monnappa and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

The author is a Reuters Breakingviews columnist. The opinions expressed are his 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/ [email protected] and DUTTA/ [email protected]))

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

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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)

(([email protected];))

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

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Rewrites throughout

By Urvi Dugar and Abinaya V

Feb 17 (Reuters) - Adani Enterprises ADEL.NS said on Tuesday that it will invest $100 billion to build renewable-powered AI-ready data centres by 2035, positioning India as a contender in the global AI race.

India has seen a surge in big-ticket AI infrastructure spending, with global players like Google GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Microsoft MSFT.O ramping up investments along with domestic companies such as Reliance RELI.NS and TCS TCS.NS.

"AI-ready data centres would be a critical nerve centre of the AI-driven environment and it's natural that large groups with deep pockets will get future-ready by setting up such data centres," said Ambareesh Baliga, an independent market analyst.

Top firms, including Reliance and the Adani Group, are moving quickly to capture the vast opportunities as businesses align themselves with what is seen as a major disruptor ahead, he added.

Adani said that the investment is expected to trigger an additional $150 billion across related industries including server manufacturing and sovereign cloud platforms. Together, this is projected to create a $250 billion AI infrastructure ecosystem in India over the decade, it added.

Shares of Adani Enterprises closed 2.7% higher, making the stock the top gainer on the benchmark Nifty 50 index .NSEI.

INDIA-AI BOOM

Having been on the periphery of the AI boom so far due to the absence of any significant chip manufacturing capability, data centres represent India's best chance of making a mark on the global stage.

The investment will develop a model linking renewable energy, power grid resilience and AI computing, according to Adani.

"For decades, we imported technology. Now we are building the backbone," Chairman Gautam Adani said in a post on X.

"India will not follow the AI century. India will shape it".

The ports-to-power conglomerate will build on its existing 2 gigawatt data centre capacity and scale it to 5 GW to create the world's largest integrated data centre platform, it said, without providing a timeline.

Additionally, Adani will invest $55 billion to expand its renewable energy portfolio, which will include one of the world's largest battery energy storage systems.

AI PARTNERSHIPS

Adani has an existing partnership with Google, which has pledged to invest $15 billion over five years to build an AI data centre, its biggest ever investment in India.

The company said on Tuesday it will expand its existing partnership with Walmart WMT.O-backed Flipkart to develop a second AI data centre.

It is also in discussions with other major players to establish large-scale campuses across India, it said, without disclosing further details.

(Reporting by Urvi Dugar in Bengaluru; Writing by Abinaya Vijayaraghavan; Editing by Sonia Cheema)

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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

(([email protected];;))

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)

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Updates share levels throughout, stock milestone in headline and paragraph 1, analyst comment in paragraphs 6-7

By Nandan Mandayam

Feb 12 (Reuters) - Shares of Indian software exporters slid over 5% on Thursday, pushing the Nifty IT index to a near 10-month low, as persistent fears of AI-led disruption and fading hopes of a near-term Federal Reserve rate cut weighed on sentiment.

The 10-member .NIFTYIT index was the worst-performing sector on the day and remains the weakest so far this year, after sliding 12.6% in 2025 and a further 12.2% in 2026.

Tata Consultancy Services TCS.NS, Infosys INFY.NS and HCLTech HCLT.NS fell 5.5%, 5.7%, and 4.1%, respectively, on the day.

The launch of Amazon AMZN.O and Google GOOGL.O-backed Anthropic's Claude Cowork AI tool to automate tasks, pressured tech stocks globally last week and stoked concerns over demand for labour-intensive Indian IT services.

Domestic IT stocks have shed 14% since February 4 when the selloff began, resulting in TCS - previously India's fourth-most valuable stock - sliding to sixth place.

"The sell-off we have seen in IT stocks due to the AI models that have been launched in recent weeks is overdone," said Systematix Group analyst Ambrish Shah.

"The models currently still require human intervention and regulated verticals such as banking, financial services, and insurance are likely to be more insulated from the AI disruption."

Indian tech stocks have been battered the most, while peers in Asia, Europe and North America have recovered slightly.

Adding to the pressure on Indian IT stocks, hopes of a Fed rate cut faded after U.S. job growth unexpectedly accelerated in January and the unemployment rate fell, bolstering bets that interest rates may stay higher for longer.

That weighed on IT shares, which derive a significant portion of revenue from the United States. Lower U.S. rates could lift demand for IT spending that has largely been muted for the last few years.

The slump in IT stocks also dragged India's benchmarks lower on Thursday, with the Nifty 50 .NSEI down 0.44% and BSE Sensex .BSESN down 0.5%.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema and Nivedita Bhattacharjee)

(([email protected]; Mobile: +91 9591011727;))

** 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)

(([email protected];))

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

• QAD | REDZONE AND TCS ANNOUNCE STRATEGIC PARTNERSHIP TO ACCELERATE AI-DRIVEN TRANSFORMATION IN MANUFACTURING

Source text: ID:nBw59FCjSa

Further company coverage: TCS.NS

(([email protected];))

Recasts throughout; adds analyst and fund manager comments

By Kashish Tandon and Vivek Kumar M

BENGALURU, Feb 6 (Reuters) - Indian software exporters plunged another 2% on Friday and looked set to end a tumultuous week that has seen $22.5 billion in market value losses on growing fears that new AI tools could severely disrupt the country's IT outsourcing industry.

The selloff was part of a global rout in software and data services stocks, triggered by the launch of an AI tool from Anthropic that automates tasks across legal, sales, marketing and data analysis functions.

The IT index .NIFTYIT was the worst-performing sector on the day and was down about 7% for the week - its steepest weekly drop in more than four months.

Analysts said fast-advancing AI tools could upend India's $283‑billion IT sector, which is heavily reliant on a labour‑intensive delivery model.

"The market fears (the AI tools) may replace IT services that are currently outsourced. What the real impact will be remains to be seen," said VK Vijayakumar, chief investment strategist at Geojit Investments.

The selloff comes as some IT firms have said they are gaining from clients showing more willingness to fund AI projects despite being careful about discretionary spending amid global economic uncertainty.

Top IT firms TCS TCS.NS, Infosys INFY.NS and Wipro WIPR.NS have secured AI-led deals and are rolling out domain-specific platforms across verticals such as BFSI and healthcare as clients accelerate adoption.

Still, the IT index has now shed nearly 18% since the start of 2025, including Wednesday's selloff, when it logged its biggest single‑day fall in six years. Foreign investors sold a record $8.5 billion worth of Indian IT stocks in 2025.

KNEE-JERK REACTION, SAY SOME ANALYSTS

Industry watchers were divided on their assessment of the situation.

Centrum Broking's Piyush Pandey called the selloff a "knee‑jerk" reaction.

"AI tools have been in the works and this is how the industry is now shaping up. However, they are not expected to materially disrupt the industry as of now," he said.

Others said the sector should brace for more pain down the road.

"Surely, there would be other tools in the making that will automate tasks and increase the competitive intensity in the IT industry," said Arun Malhotra, fund manager at CapGrow Capital.

Companies will likely take measures to address these challenges, including acquisitions, he added, but "we don't foresee the glory days of the IT sector, that has been missing for the last couple of years, returning soon."

All 10 constituents of the IT sub-index traded lower on Friday. Coforge COFO.NS was down 3.4%, while TCS and Infosys INFY.NS slipped nearly 2.1% and 1.4%, respectively.

The benchmark Nifty 50 .NSEI was down 0.3%.

($1 = 90.2350 Indian rupees)

(Reporting by Kashish Tandon and Vivek Kumar M in Bengaluru; Editing by Dhanya Skariachan, Mrigank Dhaniwala and Sonia Cheema)

(([email protected]; 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)

(([email protected]; 8800437922;))

Feb 4 (Reuters) - Shares of Indian IT exporters .NIFTYIT slumped 6% on Wednesday, tracking losses in global software stocks, after AI developer Anthropic launched new tools that heightened concerns over AI-driven disruption in the data and professional services industry.

Anthropic launched plug-ins for its Claude Cowork agent on Friday that would automate tasks across legal, sales, marketing and data analysis, triggering a significant selloff among U.S. and European data analytics, professional services and software companies.

The Indian IT sub-index joined the rout on Wednesday and was set for its worst day since May 2022. All 10 of its constituents were in losses, led by a 7% drop in software services exporter Persistent Systems PERS.NS.

Heavyweights TCS TCS.NS and Infosys INFY.NS were down 5.2% and 5.8%, respectively, while Wipro WIPR.NS fell nearly 4%.

(Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]; 8800437922;))

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

(([email protected];))

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

(([email protected];))

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

(([email protected];))

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)

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Recasts paragraph 1, adds details and analysts' comments

Jan 19 (Reuters) - Wipro WIPR.NS, India's fourth-largest IT services exporter, slumped as much as nearly 10% on Monday after a lacklustre fourth‑quarter revenue forecast and muted deal wins, which lagged those of larger rivals, weighed on investor sentiment.

Wipro's stock was trading 6.7% lower at 248.75 rupees, as of 10:38 a.m. IST, and was on track for its steepest fall since July 2024. It was also the top percentage loser in the benchmark Nifty 50 .NSEI and the IT index .NIFTYIT, which fell 0.8% and 0.7%, respectively.

The Bengaluru-based company expects its fourth-quarter revenue to be flat to up 2% sequentially, including contributions from acquisitions. Total deal bookings for the third quarter stood at $3.34 billion, the lowest in six quarters.

The outlook suggests slower conversion of deals into revenue and weaker growth visibility heading into fiscal 2027, compared with peers such as TCS TCS.NS and Infosys INFY.NS, potentially widening the company's valuation gap, Morgan Stanley analysts said in a note.

They downgraded Wipro's stock to "underweight" from "equal-weight" and slashed price target to 242 rupees from 270 rupees.

Wipro trades at a 12-month forward P/E of 19.7x, compared with 21.3x for TCS TCS.NS and 22.5x for Infosys, highlighting a valuation discount relative to its larger peers.

"Wipro is facing double whammy of not being able to sustain the revenue nor curb costs and maintain the profitability," said Gaurav Vasu, founder of market intelligence firm UnearthInsight.

"Among the top four, they have the lowest margins."

Wipro's third-quarter results sent its U.S.-listed shares down as much as 7.2% on Friday.

Softer deal bookings and delays in project ramp-ups contributed to the weaker‑than‑expected fourth-quarter growth outlook, according to Jefferies analysts.

The company's muted outlook contrasts with larger rivals TCS and Infosys, which reported steady deal wins and better‑than‑expected revenue in the seasonally weak third quarter.

(Reporting by Kashish Tandon and Sai Ishwarbharath B in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips)

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Recasts to add exec, analyst comments; adds shares

By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU, Jan 16 (Reuters) - India's fourth-largest IT services firm Wipro forecast weaker-than-expected revenue growth for the current quarter on Friday after deal bookings fell to a six-quarter low in the December period, sending its U.S.-listed shares down as much as 7.2%.

The muted outlook came after larger rivals Tata Consultancy Services TCS.NS and Infosys INFY.NS reported steady deal wins and better-than-expected revenue in the seasonally weak third quarter.

"Wipro's revenue growth was in line (with estimates), but deal wins were slightly below average. Mainly, its guidance is below street expectations," DAM Capital analyst Anmol Garg said.

The Bengaluru-based company expects fourth quarter revenue to be flat to up 2% sequentially, including contributions from acquisitions. That compares with Kotak Institutional Equities' estimate of 1.5%–3.5% growth for the period.

It reported total deal bookings of $3.34 billion for the third quarter, its lowest in six quarters, versus $4.69 billion in the previous quarter and $3.5 billion in the same period a year earlier.

Consolidated sales rose 5.54% to 235.56 billion rupees ($2.59 billion), topping the analysts' average estimate of 233.91 billion rupees, according to data compiled by LSEG.

Net profit fell 7% to 31.19 billion rupees, missing analysts' average estimate of 33.52 billion rupees. The quarter included a 3 billion rupee charge tied to India's new labour codes.

Wipro's margins and earnings are under pressure from continued investment in AI-driven delivery models, higher compliance costs under the new labour codes, and rising wages, NelsonHall analyst Gaurav Parab said.

"Wipro is prioritizing long-term capability building, even as demand remains uneven," Parab added.

SECTOR OUTLOOK IMPROVES

Smaller peer Tech Mahindra TEML.NS beat revenue estimates for the third quarter on Friday, helped by demand from clients in the communications industry.

After paring back discretionary spending amid tariff-related uncertainty, clients of India's $283 billion IT sector are showing greater willingness to invest in AI-driven projects.

There is "a very clear shift towards AI-led transformation", Wipro CEO Srini Pallia said in a post-earnings call.

Tech Mahindra said it expected to outperform its peers in terms of revenue growth in the next fiscal year.

"We are seeing signs of stability across the U.S., coupled with stabilization of top clients spending. Europe is expected to move from stability phase into growth phase," Tech Mahindra CEO Mohit Joshi said on Friday.

($1 = 90.8310 Indian rupees)

(Reporting by Haripriya Suresh Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee, Dhanya Skariachan and Tasim Zahid)

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Jan 14 (Reuters) - Advanced Micro Devices Inc AMD.O:

• TCS AND AMD ANNOUNCE STRATEGIC COLLABORATION TO DRIVE AI ADOPTION AT SCALE

Source text: ID:nGNXc9wcqd

Further company coverage: AMD.O

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Jan 13 (Reuters) - Indian engineering research and development (ER&D) firm Tata Elxsi TTEX.NS reported a 45.3% drop in third-quarter profit on Tuesday, primarily due to a one-time charge tied to the country's new labour codes.

The Bengaluru-based company reported a profit of 1.09 billion rupees ($12.1 million) for the quarter ended December 31.

Tata Elxsi took an exceptional charge of 956.9 million rupees for the reported quarter, citing a one-time increase in employee benefit provisions following India's new labour codes.

The codes, which came into effect in November, require employee wages to be at least 50% of cost to company, and benefits like provident fund and gratuity to be determined based on wages.

On Monday, IT companies TCS TCS.NS and HCLTech HCLT.NS also reported one-time charges of 21.3 billion rupees and 9.6 billion rupees, respectively, to factor in the new labour codes.

However, Tata Elxsi's third-quarter revenue grew 1.5% year over year to 9.53 billion rupees driven by growth in its software development and services segment.

Excluding the exceptional item and taxes, the firm reported a profit of 2.42 billion rupees for the third-quarter, a 5.4% decline from the same quarter last year.

Shares of the company closed 1.6% higher ahead of results.

($1 = 90.2010 Indian rupees)

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

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BENGALURU, Jan 12 (Reuters) - Tata Consultancy Services TCS.NS, India's largest software services firm, posted a bigger-than-expected third-quarter revenue on Monday as artificial intelligence-led demand ramped up.

The company's consolidated revenue increased 4.9% to 670.87 billion rupees ($7.44 billion) in the third-quarter ended December 31, surpassing analysts' expectation of 666.76 billion rupees, as per data compiled by LSEG.

($1 = 90.1660 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by Janane Venkatraman)

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