Foreign investors are back in Indian IT, thanks to AI
Foreign investors just poured ₹4,500 crore ($495 million) into Indian IT stocks—their first big buy since May.
This comeback follows reported boosts in revenue from artificial intelligence, while an NSE gage of tech stocks is on pace for its best month against the benchmark Nifty 50 since November 2024.
Why does this matter?
Even after heavy foreign outflows—driven by valuation concerns, global political tensions and worries about US tariffs and reduced corporate tech spending—IT stocks are showing signs of life.
With foreign investor stakes at multi-year lows, there's fresh hope for selective rebounds if you're eyeing this sector.
What's fueling the excitement?
Indian IT giants like TCS and HCL Technologies saw AI revenues jump 17-20% last quarter.
Infosys expects even better margins as more companies put generative AI to work in real projects.
Despite some profit misses, analysts remain upbeat about future growth driven by AI adoption.