TCS

BENGALURU, April 13 (Reuters) - Tata Consultancy Services TCS.NS has ordered a probe into allegations of sexual assault and forced religious conversion involving employees at its Nashik office in western India, its parent Tata Sons said on Monday.

The probe, led by TCS's Chief Operating Officer Aarthi Subramanian, is underway to establish the facts and identify those responsible, Tata Sons Chairman N. Chandrasekaran said in a statement.

“Any necessary process improvements or corrective measures will be promptly implemented and strictly enforced,” he added.

Nashik city police are investigating nine complaints linked to the alleged incidents at the branch of India's largest software exporter, the Indian Express reported.

Police have arrested six people so far, the newspaper said.

The employees under investigation have been suspended pending the inquiry, a TCS spokesperson said.

“We are looking into the incident carefully. The investigations are underway,” Maharashtra Chief Minister Devendra Fadnavis told reporters on Sunday.

(Reporting by Sai Ishwarbharath B; Editing by Tasim Zahid)

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Adds results details, analyst comments throughout

April 10 (Reuters) - Shares of Tata Consultancy Services TCS.NS fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.

The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.

It was the third-biggest decliner on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI.

The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.

TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.

Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.

Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.

U.S.-listed shares of TCS' smaller rivals Infosys INFY.NS and Wipro WIPR.NS also lost nearly 2% overnight.

While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.

BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.

TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.

(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)

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** Shares of TCS TCS.NS climb 1.4% to 2,596.10 rupees ahead of its Q4 results

** Analysts, on avg, expect TCS' revenue to climb 7.8% Y/Y, profit to rise 11.6% Y/Y - data compiled by LSEG

** Deal pipeline remains healthy, with TCS expecting $7 bln–$9 bln of order bookings; BFSI, telecom and tech remain strong, CLSA says

** Margins likely stable sequentially, supported by currency tailwinds, though variable pay and promotions pose headwinds – CLSA

** Jefferies expects TCS to outperform large-cap peers on margins in Q4, aided by forex benefits and modest inorganic contribution

** TCS seen delivering a steady Q4, with constant currency revenue growth of ~0.6% sequentially and EBIT margin around 25.2%, JP Morgan says

** TCS kickstarts Q4 earnings for Indian IT

** Avg rating on TCS at "buy"; median PT is 3,460 rupees - data compiled by LSEG

** YTD, TCS down ~18% VS IT index's .NIFTYIT 16.5% drop; Nifty 50 .NSEI down 8.9% YTD

(Reporting by Kashish Tandon in Bengaluru)

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

By Shritama Bose

MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.

Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.

Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.

It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.

A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.

To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.

That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.

Air India said Wilson made known in 2024 his intention to quit this year.

Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.

(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

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

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March 19 (Reuters) - Amadeus IT Group SA AMA.MC:

• SIGNS GLOBAL STRATEGIC AGREEMENT WITH TATA CONSULTANCY SERVICES

• RELATIONSHIP TO SPAN MULTIPLE AREAS OF BUSINESS

• IN FIRST INSTANCE, COLLABORATION TO SEE TCS BECOME SUPPORTING PARTNER IN IMPLEMENTATION OF AMADEUS NEVIO

Source text

Further company coverage: AMA.MC

(Gdansk Newsroom)

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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

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

• TCS LAUNCHES RAPID OUTCOME AI PLATFORM POWERED BY NVIDIA

Further company coverage: TCS.NS

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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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March 6 (Reuters) - Tata Consultancy Services Ltd TCS.NS:

• MOODY'S RATINGS: ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF TATA CONSULTANCY SERVICES

Source text: ID:nMDY1k73KR

Further company coverage: TCS.NS

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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 TO BRING AI-POWERED ORCHESTRATION

Source text: ID:nBSE2ZMQgT

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)

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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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Feb 19 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

- United States Food and Drug Administration reversed course and agreed to begin a review of Moderna's MRNA.O application to sell a new seasonal flu shot after the vaccine maker agreed to conduct additional testing in the elderly.

- Boeing BA.N signed deals to sell almost 100 jets to Vietnamese carriers valued at over $30 billion, signaling warming ties between the U.S. and Vietnam as trade talks continue.

- Tata Consultancy Services TCS.NS said Thursday that it and the ChatGPT maker will build services tailored to specific industries, help businesses integrate the AI startup’s platforms worldwide and develop infrastructure in India to power AI workloads.

- Dominic LeBlanc, the Canadian minister in charge of U.S.-Canada ties, said Wednesday he’s confident that Ottawa and Washington can work through points of contention, and proceed on talks related to the future of the U.S.-Mexico-Canada trade pact.

- The U.S. is hosting an inaugural meeting of President Trump’s Board of Peace on Thursday, where he will announce that Board of Peace members have contributed $5 billion for Gaza’s humanitarian reconstruction effort.

- The U.S. is in the process of withdrawing all of its roughly 1,000 troops from Syria, American officials said, bringing an end to a decadelong U.S. military presence that fought Islamic State.

(Compiled by Bengaluru newsroom)

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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) - Advanced Micro Devices Inc AMD.O:

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

• AMD: ENTERPRISES IN INDIA TO ACCESS 200MW AMD 'HELIOS' AI ARCHITECTURE

Source text: ID:nGNXc93Hjr

Further company coverage: AMD.O

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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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Feb 12 (Reuters) - Shares of Indian software exporters slid more than 4% on Thursday, hit by persistent fears of AI-led disruption in the sector and compounded by stronger-than-expected U.S. jobs data that dimmed hopes of near-term interest rate cuts.

The Nifty IT .NIFTYIT index fell to a four-month low early on Thursday, with industry leaders Tata Consultancy Services TCS.NS, Infosys INFY.NS and HCLTech HCLT.NS trading down between 4% and 5%.

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

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** 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)

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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

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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)

(([email protected]; 8800437922;))

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 fell 0.7% 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."

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".

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

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Updates for afternoon trade

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)

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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

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