The information technology (IT) sector stocks are under pressure in today’s session, even as the earnings season gains momentum. The Nifty IT index slipped 1% in early trade. Market speculation suggests it may be on the back of Anthropic‘s new controversial tool Mythos.
Anthropic’s 244-page System Card described Mythos as “too powerful to release” due to its unprecedented ability to exploit software vulnerabilities. That’s why despite the release two days back, its access is only restricted to a “Gated Research Preview” as part of a new $100 million defensive cybersecurity initiative called Project Glasswing.
Interestingly, this comes at a time when Tata Consultancy Services (TCS), India’s largest IT services company, is set to announce its Q4 results later today. TCS is the only tech stock in green today.
IT sector stock performance at this hour
In early trading, Infosys, LTI MindTree and Coforge declined about 2% each. Oracle Financial Services Software (OFSS), Tech Mahindra, and HCL Tech also edged lower by 1% each.
Persistent Systems, Wipro, and Mphasis is also trading down marginally lower.
In its latest report, the domestic brokerage firm Motilal Oswal shared its outlook on IT sector stocks, highlighting key trends shaping the space.
What is Project Glasswing and why it matters
As per the Motilal Oswal report, the important aspect to watch out for now is that its access is restricted to a small set of users, considering the new AI model is capable of ushering in a new era of hacking and cybersecurity with its capability of advanced reasoning to exploit software vulnerabilities.
Anthropic statement says – Project Glasswing is a new initiative that brings together Amazon Web Services, Anthropic, Apple, Broadcom, Cisco, CrowdStrike, Google, JPMorganChase, the Linux Foundation, Microsoft, NVIDIA, and Palo Alto Networks in an effort to secure the world’s most critical software.
Motilal Oswal on Tech sector stocks: Possible impact
Motilal Oswal outlined the impact on IT services and pointed out that “Mythos builds on big gains in capabilities on Opus, which, released in Feb’26, sent most tech/SaaS stocks tumbling down. While this release may not have the same impact on stocks, it further expands the list of things AI can do better than humans – coding, ERP, and now cybersecurity.”
According to the domestic brokerage house, “It (Mythos) is extremely large-scale (reported to be in the highest compute class) and trained specifically for deep code understanding, vulnerability detection and exploit simulation.”
Motilal Oswal doesn’t expect immediate disruption of security services stack
Motilal Oswal, elaborating on the impact of the new release on Indian IT services, said that “We believe this does not immediately disrupt the entire security services stack, but it does signal gradual effort compression in parts of testing and vulnerability assessment work, which is a key area to monitor for IT services.”
According to the brokerage report, “Manual-heavy security services: Traditional vulnerability assessment relies on engineers + tools. Mythos could reduce effort in testing and audit layers.”
“Large enterprises, on the other hand, operate in brownfield setups with legacy systems built over 20-30 years. Deploying AI here requires integration, data cleanup and governance alignment, which takes time,” added Motilal Oswal report.
What investors need to watch
With companies like TCS announcing results, investors are waiting for clarity on growth outlook, deal pipelines, and margin trends.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.