Market volatility has intensified in the cybersecurity sector following the launch of Anthropic’s new AI security tool, Claude Code Security. This advanced autonomous agent, which identifies and remediates vulnerabilities in open-source software, has triggered a wave of concern regarding the disruption of traditional cybersecurity business models. The impact was felt immediately across the portfolio of prominent investor Vijay Kedia. On Tuesday, shares of TAC Infosec, where Kedia maintains a **9.58%** stake, plummeted to a **20%** lower circuit. TechD Cybersecurity also experienced a sharp decline, falling more than **14%** as investors weighed the competitive threat of AI-driven automated patching against legacy security services. Broader markets have echoed this sentiment. Global cybersecurity leaders saw significant corrections, with CrowdStrike and Cloudflare dropping between **8%** and **10%**. Zscaler and Okta also recorded losses exceeding **5%** and **9%** respectively. These movements reflect a growing investor fear that AI tools capable of reasoning like human researchers may eventually replace human-centric vulnerability management and code auditing. Despite the recent sell-off, some analysts suggest the market reaction may be a "mini-flash crash" driven by headlines rather than immediate operational displacement. While Claude Code Security has reportedly identified over **500** vulnerabilities in active production code, industry experts note that enterprise-grade security still requires independent, battle-tested platforms to handle real-time endpoint protection and identity management. Current data shows TAC Infosec trading at approximately **₹515.00**, reflecting a **15%** decline over the last five trading days. TechD Cybersecurity is currently priced near **₹472.65**, with a one-month return of approximately **-12.84%**. These figures underscore the high volatility in the SME cybersecurity space as emerging AI capabilities continue to redefine the technological landscape. Investor focus remains on how traditional providers will integrate AI to scale their own stacks. While the immediate pressure on stock prices is evident, the long-term outlook for the sector will depend on whether these companies can pivot to complement autonomous AI security or if they will be superseded by the next generation of generative AI agents.