India's IT sector faces investor uncertainty due to a global slowdown and AI disruption fears. Market expert Daljeet Kohli advises caution, citing a lack of growth. Meanwhile, Reliance Jio's IPO is viewed as a strategic move to unlock value and offer a focused bet on India's telecom growth.
Amit Khurana of Dolat Capital upgraded India's IT sector, citing low valuations and rupee depreciation. He anticipates double-digit net earnings growth for IT exporters by FY27 and backs LTIMindtree, OFSS, eClerx Services, and Intellect Design Arena.
Russian Prime Minister Mishustin stated that Russian IT companies are increasingly adopting local products and services. Software exports rose 15% for the first time since 2022. AI is used by over half of Russian companies, and Russian software fully supports key sectors.
The IT sector's share in Russia's GDP has doubled in six years, reaching 47% of regional GDP growth in the Nizhny Novgorod region, according to Prime Minister Mikhail Mishustin and Governor Gleb Nikitin.
Vinit Bolinjkar, Head of Equity Research at Ventura Securities, has issued a strong sell call on IT stocks due to the Hormuz Strait crisis, FII outflows, and the global AI infrastructure shift.
London-headquartered bank’s shares slide as it sets aside an extra $300m to cover effects of Middle East conflictBusiness live – latest updatesHSBC has suffered a $1.3bn (£961m) hit to profits, fuelled by the fallout from the US-Israel war on Iran and fraud in the troubled private credit sector.The London-headquartered bank said profits fell 4% in the first three months of the year, dropping $100m to $9.4bn, compared with the same period in 2025. Revenue increased 6% to $18.6bn. Continue reading...
Global equity research firm Bernstein has warned Indian Prime Minister Narendra Modi of a deepening employment crisis as artificial intelligence threatens quality jobs in India's IT sector. For two decades, 10-15 million Indians in IT services and BPO have driven consumption and anchored the aspirational middle class. Now, AI is shifting the industry from labor arbitrage to tech arbitrage, with major IT firms like TCS and Cognizant cutting jobs while reducing hiring.
Infosys slipped out of India's top 10 most valued companies on Monday, closing with a market capitalisation of just over Rs 4.7 lakh crore, ranking 11th behind LIC. TCS, once the second-most valued company, now ranks sixth with a market cap of Rs 8.9 lakh crore. The shifts are driven by AI-led disruptions challenging business models of India's software exporting majors, as IT stocks witnessed sharp sell-offs while the Sensex closed 639 points up at 77,304.
India's top software exporters are under pressure as Infosys and HCL Technologies report disappointing results, exacerbated by a weak global economy and AI disruption, leading to a sharp decline in the IT sector's valuation.
Rajesh Palviya of Axis Securities says Nifty is struggling to hold above its 50-day moving average, with 24,200 being the key supply zone. IT sector has broken below 30,000 support and may slide to 27,800. He recommends avoiding IT entirely and instead focusing on power, FMCG and pharma sectors which are showing strength. His stock picks are AU Small Finance Bank (target ₹1,100, stop loss ₹1,045) and SAIL (target ₹188-192, stop loss ₹173).
Indian equity markets experienced a significant downturn, with the top ten most-valued firms losing over Rs 2 lakh crore. Tata Consultancy Services and Reliance Industries bore the brunt of this decline, influenced by geopolitical tensions and weak IT sector commentary. The broader market also saw substantial drops in benchmark indices.
India's IT sector is experiencing a significant increase in replacement hiring as Gen Z professionals exhibit shorter job tenures. Companies are adapting by increasing contractual roles, accelerating onboarding, and focusing on continuous reskilling to manage workforce evolution.
Sandip Agarwal, Fund Manager and Co-founder at Sowilo Investment Managers, believes the worst is behind Indian IT, with 20-30% index-level returns achievable in the near term. He explains the TCV-revenue disconnect as normal given 3-5 year contract conversion cycles and recent client indecision on AI spending. Despite 3-4% annual AI-driven deflation, large IT players can deliver 6-7% dollar revenue growth plus 13-14% EPS growth. He recommends avoiding ER&D exposure and sees FY27 as the cyclical trough with improved performance ahead.
TCS CEO K Krithivasan rejects the notion that India's IT sector will become obsolete, viewing AI as a catalyst for growth. Despite a 2.4% revenue decline in FY26, the company achieved a record $40.7 billion in total contract value.
