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Indian IT stocks jumped sharply on Tuesday. HCLTech and Infosys rose nearly 4%, while TCS gained around 2%. The Nifty IT index also climbed nearly 2%, making it one of the best-performing sectors in the market. Other tech stocks, including Tech Mahindra, Wipro, and Mphasis also gained.
So, what triggered the rally? AI. Some of the world’s biggest AI leaders have called for companies to slow down the development of increasingly powerful AI models because of concerns about how the technology could be misused.
Anthropic CEO Dario Amodei made the call, while OpenAI CEO Sam Altman and xAI chief Elon Musk agreed. This matters for Indian IT companies because they have been under pressure as the rapid growth of AI raised fears that AI could automate some of the software and technology work these companies traditionally do. A slower pace of AI development could give them more time to adapt. Globally, however, the same warnings pushed AI and chip stocks lower.
