Indian stock market faces significant turbulence as Sensex drops over 800 points, wiping out Rs 4.62 lakh crore in investor wealth. The sharp decline is primarily driven by a massive selloff in IT stocks, with major players like Infosys, TCS, HCLTech, and Wipro experiencing substantial losses. The market downturn stems from growing concerns about AI's disruptive potential in the technology sector, triggered by Anthropic's new enterprise-focused AI tool that can automate complex legal functions. Global market sentiment also remains weak, with Wall Street experiencing a steep technology stock selloff. Investors are now cautious about the IT sector's future earnings visibility and potential margin compression. Market experts suggest a possible capital rotation towards more resilient sectors as the technology landscape undergoes significant transformation.
