Nifty IT slips 1%: Is Anthropic's 'Mythos' AI model a worry for India tech stocks - Motilal Oswal explains

Nifty IT slips 1% today. Anthropic's AI model Mythos raises concerns for India tech stocks -- track market impact and key trends now!

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. This is after Anthropic released the preview of the new model, Mythos. This is seen as stronger than earlier models like Claude Opus on coding and security benchmarks.

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 a recent report, brokerage firm Motilal Oswal shared its latest outlook on IT sector stocks, highlighting key trends shaping the space.

Motilal Oswal on Tech: AI developments creating new concerns

Motilal Oswal in its report pointed out that the key factors weighing on IT stocks is the rapid advancement in artificial intelligence (AI) capabilities.

The report highlighted a new model launched by Anthropic, a global AI research company, which is showing significant improvements in both coding and cybersecurity tasks.

"Mythos is positioned as extremely good at identifying and fixing cybersecurity vulnerabilities, outperforming human experts and existing tools," the brokerage house report added.

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 on Tech: What is Project Glasswing and why it matters

The new AI model is being rolled out under a controlled programme called Project Glasswing.

As per the Motilal Oswal report, "Project Glasswing is a controlled deployment of Anthropic's most advanced cybersecurity-focused model. Access is restricted to a small set of large enterprises and infrastructure players."

This limited rollout suggests that while the technology is powerful, it is still in a testing phase. However, its capabilities are already drawing attention, especially in areas like vulnerability detection and system security.

The report further noted, "In simple terms, if AI can be used to write better code, it can also be used to find vulnerabilities or automate attacks. Glasswing is built to stay ahead of that risk."

Motilal Oswal on Tech: Pressure on traditional IT services model

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."

Motilal Oswal added that Mythos is positioned as "extremely good at identifying and fixing cybersecurity vulnerabilities, outperforming human experts and existing tools." In some cases, it has identified bugs that remained undetected for decades despite multiple testing cycles. "In some ways, it is superior to most human cybersecurity engineers," they added.

"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.

As per the brokerage report, "We believe Mythos shows that model capabilities are moving ahead quickly with AI now extending beyond coding, ERP (Enterprise Resource Planning) into areas like cybersecurity."