How Anthropic's new AI model will affect Indian IT stocks

The Mythos model is said to offer a huge leap in agentic software development capabilities. It has raised the near- to medium-term disruption risks for IT services according to Kotak Institutional Equities.

Kotak Equities noted that the Mythos model shows a "step-change" in benchmark performance across software engineering tasks, which could pose risks to demand as well as valuations across the sector. If these performance enhancements are effectively translated into real-world applications, Kotak Equities warned that its tipped 3%-3.5% annual growth headwind for the IT services industry over next three years, could shift from a conservative assumption to a more realistic baseline.