**Market Brief: IT Sector Volatility & AI Disruption Fears** **Overnight ADR Sell-Off** Indian IT majors **Wipro** and **Infosys** are facing renewed selling pressure today following a sharp decline in their American Depository Receipts (ADRs) on Wall Street overnight. * **Infosys ADRs** slumped **5.6%** to close at **$17.32**. * **Wipro ADRs** fell **4.8%** to end at **$2.56**. **The AI Trigger** The sudden bearish sentiment stems from **Anthropic’s launch** of a new AI agent designed specifically for legal and compliance workflows. Unlike previous tools that merely assisted humans, this new "agentic" AI automates complex tasks like contract review, due diligence, and regulatory triage. **Sector-Wide Contagion** Investors are reacting to fears that advanced AI is shifting from a productivity enhancer to a direct competitor for core BPO and IT service revenues. The sell-off was not limited to Indian firms; US-listed data and professional service giants also plunged: * **Thomson Reuters** and **Gartner** saw intraday drops of up to **25%**. * The wider **S&P North American Software Index** is facing its worst monthly decline since 2008, with analysts describing the sentiment as a "SaaSpocalypse." **Outlook & Sentiment** While the Nifty IT index showed resilience in the previous session (closing **+1.4%** on Tuesday), the overnight rout in the US signals potential volatility for Indian trading today. The narrative has quickly pivoted from "AI adoption growth" to "AI displacement risk," putting immediate focus on how IT consultancies defend their pricing power and margins in the near term. *** **I can set up a watchlist to track the live spread between these ADR prices and their NSE counterparts for you.**