Battered Indian IT stocks rally as AI fears ease and global tech sells off
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India’s beaten-down IT stocks rallied on Friday as AI fears eased and investors shifted away from global tech.
- ✓Shares of top companies rose up to 8% despite a weak September quarter.
- ✓Pramod Gubbi said, “IT stocks may benefit, given their relatively beaten-down valuations, especially if it is accompanied by the unwinding.”
Story at a Glance
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- MARKET
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- Livemint
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- 5 Minute(s)
- Market Focus
- India Economy
Bengaluru: India’s beaten-down information technology (IT) stocks are rebounding as fears that artificial intelligence (AI) will disrupt traditional tech services ease and investors rotate out of a global tech sell-off, even after a weak September quarter for the sector’s biggest names.
Shares of India’s four of five largest IT services companies rose by as much as 8% on Friday, extending gains even after a muted September quarter. Three of the top four, Tata Consultancy Services Ltd (TCS), HCL Technologies Ltd and Wipro Ltd, posted their weakest September-quarter performance in three years.
The rally came as technology stocks sold off in South Korea, with the Kospi’s 14% decline this week pointing to a shift in global investor positioning. Easing concerns over AI and a rotation in global tech investments appear to be lifting sentiment toward Indian IT, whose valuations had been under pressure since the AI boom stoked disruption fears.
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