Anthropic’s IPO prospectus filing in the US led to a drop in major Indian IT stock prices, reflecting market jitters over AI developments. At the same time, Walmart is not rushing to list Flipkart, preferring to keep control amid mounting losses. In regulatory news, the establishment of India’s Data Protection Board remains stalled despite impending operational deadlines.
- Anthropic IPO filing pressures Indian IT stocks down 3%
- Walmart delays Flipkart IPO due to ongoing losses and leadership change
- India’s Data Protection Board not yet functional ahead of regulatory deadlines
What happened
Anthropic filed for a US initial public offering (IPO) aiming to become a leading AI model developer. Although its growth prospects are significant, the company reported extremely high infrastructure costs and a net loss of $80.7 billion during the first half of 2026. This filing spooked Indian IT stocks, with market heavyweights like Tata Consultancy Services, Infosys, Wipro, HCLTech, and Tech Mahindra declining by up to 3% on the trading day following the announcement.
Conversely, AI-related stocks overseas rallied, such as Nvidia rising 3%, and South Korea’s KOSPI index surging 5%. Meanwhile, Walmart, Flipkart’s parent company, continues to postpone Flipkart’s public offering. Internal pressures from former employees seeking liquidity have not swayed Walmart's new leadership, which is wary of exposing the loss-making e-commerce giant to public market scrutiny amidst ongoing financial challenges.
Why it matters
Anthropic’s IPO represents a significant moment in AI market expansion, but the negative reaction among Indian IT investors reflects concerns about the sustainability of heavy investments in AI infrastructure and potential disruption in traditional technology service firms. The contrasting performance of AI stocks internationally highlights a divergence in market sentiment between tech innovators and established IT service providers reliant on legacy software development and outsourcing.
Walmart’s cautious approach to Flipkart’s IPO underscores the complexity of monetizing loss-making, large-scale startups in India’s evolving marketplace. Releasing a company with sizable discounting expenses and cash burn into public markets invites rigorous scrutiny, something Walmart’s leadership appears keen to avoid until Flipkart’s economics improve. This hesitation impacts India’s startup ecosystem signals on when and how billion-dollar companies move from private to public ownership.
What to watch next
Market participants should closely monitor how Anthropic’s IPO unfolds and whether its technological ambitions deliver viable growth to justify its massive losses. Indian IT stocks’ sensitivity to AI developments could continue to fluctuate depending on global AI investment trends and competitive pressures. Investors will also assess if Indian IT firms pivot their strategies to better capitalize on the AI wave or face prolonged valuation pressures.
For Flipkart and Walmart, the timeline of any public listing remains uncertain but will be influenced by Flipkart’s profitability trajectory and changing leadership priorities. Shareholder and employee demands for liquidity may increase pressure on Walmart to consider alternative strategies, including potential secondary sales or partial listings.
Meanwhile, regulatory watchers must keep an eye on progress in operationalizing India’s Data Protection Board. The looming November deadline for implementing the Digital Personal Data Protection rules and consent manager registrations highlights the urgency for appointments and resourcing. Failure to establish this authority could delay enforcement of crucial privacy safeguards and penalties, affecting India’s data governance landscape.