Infosys shares rose by 6% on September 15 (Tuesday) as Indian IT stocks staged a sharp rebound. The rally followed growing calls from global AI leaders to slow the pace of advanced artificial intelligence development.
The broader Nifty IT index also gained about 5%, with Infosys, HCLTech and TCS among the major gainers. The sector’s rebound came as investors reassessed the threat that rapid AI advances could pose to traditional IT services.
The immediate trigger was a warning from Anthropic CEO Dario Amodei on the risks associated with increasingly powerful AI systems. His call for a more cautious approach to frontier AI development received support from technology leaders, including OpenAI CEO Sam Altman and Elon Musk.
The comments have added to concerns about the speed and direction of AI development. They also triggered a sell-off in several AI-linked technology and semiconductor stocks globally.
For Indian IT companies, however, the same development created a different market narrative.
The rally does not mean investors have abandoned the AI theme. Instead, the market is reassessing which technology companies could benefit from the next phase of AI adoption.
Indian IT firms face pressure to move away from traditional billable-hour models as clients demand greater productivity and lower costs. Many are therefore shifting towards outcome-based pricing and AI-enabled enterprise services.
The latest rally therefore reflects a shift in risk perception rather than the end of the AI disruption story. Investors will now watch whether the slowdown narrative persists or whether renewed AI investment once again puts pressure on traditional IT stocks.
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