Indian IT shows signs of life: The Nifty IT index rallied almost 17% in July.
Investors are rethinking the idea that AI will destroy IT services.
But the earnings from sector heavyweights like TCS, Infosys, HCLTech & Tech Mahindra were more resilient than the street had expected.
Yet, the sell-off in the sector was so brutal before July that some of the rebound may just be a tactical correction.
AI is here to stay, and the consensus around IT stocks is that a sharp margin squeeze is inevitable in the long term.
Indian IT shows signs of life: The Nifty IT index rallied almost 17% in July. Investors are rethinking the idea that AI will destroy IT services. But the earnings from sector heavyweights like TCS, Infosys, HCLTech & Tech Mahindra were more resilient than the street had expected. Yet, the sell-off in the sector was so brutal before July that some of the rebound may just be a tactical correction. AI is here to stay, and the consensus around IT stocks is that a sharp margin squeeze is inevitable in the long term.
