Mumbai, Feb. 13 -- The key equity benchmarks traded with sharp losses in morning trade, with IT stocks bearing the brunt of the decline following the introduction of new AI model by Anthropic. Market sentiment remained cautious, shifting toward a risk-off stance. The Nifty traded below the 25,550 mark.

IT shares tanked for three consecutive trading sessions after US-based artificial intelligence startup Anthropic introduced a tool targeted at corporate legal teams. The company, known for its Claude chatbot, said the platform can automate contract reviews, compliance workflows, legal brief preparation and other routine functions, raising concerns about the long-term implications for outsourcing-driven IT business models.

At 10:25 AM IST,...