HCL Tech, Coforge Share Price: Nifty IT Crashes Over 5% On Fresh AI-Led Disruption Fears - A Good Bargain At Current Level?

HCL Tech, Coforge Share Price: Shares of Indian IT services companies extended their fall for the fifth consecutive session on February 24 on fresh artificial intelligence (AI)-led disruption fears. The Nifty IT index, which tracks the 10 most valuable and actively traded IT companies, crashed over 5 per cent, slipping below the 30,000-level to hit its 31-month low.

The fresh fears came after Anthropic claimed its Claude Code tools can significantly cut the cost and complexity involved in modernising legacy software systems, a key revenue stream for traditional IT services firms.

Legacy modernisation, which involves rewriting or upgrading decades-old enterprise software, has long been a steady, high-margin business for large outsourcing companies. Anthropic’s claim that AI can automate a big chunk of this work has raised fears that such projects could require fewer billable hours and smaller teams, which could potentially pressure revenues of traditional IT services firms.

Investors are concerned that if generative AI tools can handle coding, testing and migration tasks more efficiently, the industry’s labour-intensive services model could face structural disruption.

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