The Nifty IT index traded mixed on Wednesday, with Tata Consultancy Services Ltd. rising 0.59% to ₹2,163.70 and Persistent Systems Ltd. gaining 0.29% to ₹5,032.50. According to NDTV Profit, these advances stood against seven declines in the nine-stock pack. Infosys Ltd. was the biggest drag, falling 1.52% to ₹1,162.40, while Oracle Financial Services Software Ltd. slipped 0.38%. Other major IT stocks including Tech Mahindra Ltd., HCL Technologies Ltd., Mphasis Ltd., Coforge Ltd. and Wipro Ltd. declined between 0.1% and 0.3%. Latest reports indicate that TCS has achieved AI revenues of approximately $2.5 billion on an annualised basis after four consecutive quarters of consistent AI revenue growth, demonstrating the company's successful conversion of agentic demand into durable pipeline.
Anthropic has released Claude Fable 5.0, a Mythos-class AI model now available to enterprise customers and paid subscribers. According to reports from NDTV Profit, this marks the first public version of a model that the company had previously deemed too dangerous for public release. The model was originally unveiled in April under a cybersecurity initiative called Project Glasswing, which limited rollout to a selected group of companies due to concerns over its ability to identify complex security flaws within software.
The broad release has been enabled by safeguards that block responses in high-risk areas including cybersecurity, biology and chemistry. As reported by NDTV Profit, the model will fall back to Claude Opus 4.8 for such queries. Anthropic claims that Fable 5 is state-of-the-art on nearly all tested benchmarks, with particular strength in software engineering and knowledge work - capabilities that sit at the heart of the Indian IT services business model.
TCS is not betting that agents replace the services model but rather that agents make the deployment layer more important. The company has already demonstrated this through AI revenue growing consistently for the last four quarters, with the latest quarter's AI revenue on an annualised basis close to $2.5 billion. However, the company is simultaneously adapting to the changing landscape by laying off 2% of its workforce to realign skills, even as management states the cuts reflect skill mismatch rather than direct AI-driven job displacement. The timing matters as Gartner forecasts 40% of enterprise applications will embed task-specific AI agents by end of 2026, up from less than 5% in 2025, creating opportunities for companies that can help enterprises deploy and manage intelligence at scale.
Motilal Oswal had previously analyzed the Mythos release in April, stating that it signals 'effort compression' in areas such as testing and vulnerability assessment. The latest developments show that while some companies like TCS are successfully converting AI demand into higher-value deployment work, the market remains focused on whether companies can turn agentic demand into durable pipeline and disciplined execution. The global AI agents market is projected to reach $50.31 billion by 2030 from $10.91 billion in 2026, with 51% of enterprises already running agents in production. However, the critical test will be whether companies can maintain margin strength while scaling AI adoption, as FY26 operating margin of 25% suggests AI work is not automatically pushing companies into low-value discounting.
