Why Indian IT sector is bucking the AI sell-off

The recent correction in global AI-linked technology stocks largely spared Indian IT companies, thus signalling a shift in investor sentiment. Rather than viewing AI solely as a threat to the services sector, markets are beginning to recognise that enterprise AI adoption is likely to be slower and more services-intensive than initially expected. According to analysts, this may have created fresh opportunities for IT firms in consulting, integration and governance.

“The movement clearly demonstrated that while investors are mainly rotating out of crowded AI trades, they may have become too pessimistic about the services sector,” Phil Fersht, founder and CEO of HFS Research, told Fe.