Indian IT stocks rally as global AI leaders urge slower advances (updated)

Infosys

15/09/2026 05:53

AI executives call for a slower pace of development 
Shares of software companies rise globally
HCL Tech, Infosys and TCS among top Indian IT gainers
Adds analyst comment in paragraphs 4,5
By Urvi Dugar
Sept 15 (Reuters) - Indian IT stocks .NIFTYIT surged as much as 5.2% on Tuesday,  tracking gains in global software shares, after AI executives called for a slower pace of development amid concerns over the technology's risks.
Shares of software companies globally have been battered by concerns that AI could make parts of their business obsolete. India's $315 billion IT industry is seen as especially vulnerable because of its reliance on billable hours, leaving IT stocks among the market's worst performers over the past year.
The IT index was set for its best session since July 2. It has fallen about 21% this year, more than twice the decline of the benchmark Nifty 50 index .NSEI. 
A slower pace of AI development could give Indian IT firms more time to adapt to new models and manage their costs, rather than continually spending to keep pace with the rapidly evolving technology, said Piyush Pandey, an analyst at Centrum Broking.
"Faster AI development increases uncertainty for enterprises," Pandey said, adding that Tuesday's gains were a tactical bounce rather than a sign of a fundamental improvement in the sector's outlook.
HCLTech HCLT.NS led gains on the index on Tuesday, climbing 6.21% after eight straight sessions of declines. Infosys INFY.NS and TCS TCS.NS rose 4.72% and 4.76%, respectively.
The rally comes after Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities after mounting fears that the technology could be misused. Both Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agree with Amodei.
     Alarm about the potential harm from AI intensified earlier this month when Anthropic researcher Jacob Coxon resigned, saying AI companies are "gambling with our lives."
Indian IT outsourcing companies including Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS have been rejigging their business models in response to AI-led disruption, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.

 (Reporting by Urvi Dugar in Bengaluru; Editing by Abinaya V and Sonia Cheema)
 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))