Indian IT stocks rebound after Dario Amodei warned on AI
Indian IT stocks made a comeback on Monday, snapping a two-day losing streak.
The turnaround happened after Anthropic CEO Dario Amodei flagged big financial risks with AI, saying it's tough to keep revenue growing fast enough to support massive investments, and even a small slowdown could throw trillion-dollar plans off track.
The Nifty IT index climbed 1.2%, recovering some ground lost after Accenture's gloomy demand outlook on Friday.
Accenture lowers forecast after $400 million hit
The sector had been hit hard last week when Accenture lowered its revenue forecast and pointed to a $400-million hit to its Middle East business from the Iran conflict.
Tech giants like TCS, Infosys, and HCLTech saw shares drop 4% to 8%.
On top of that, worries about delayed tech spending, global uncertainties, and AI disruption have kept investors cautious.
Still, Morgan Stanley expects things to pick up in the September quarter.