Indian IT stocks rebound after Palantir CEO Alex Karp's critique
Indian IT stocks made a quick comeback on Thursday after taking a hit the day before.
The turnaround happened when Palantir's CEO, Alex Karp, called out token-based AI pricing in a CNBC interview, describing it as a "wealth tax" that puts extra costs on businesses without real long-term benefits, while also handing over valuable data to big AI players like OpenAI and Anthropic.
Analysts cautious, midcaps gain interest
Karp's comments gave Palantir and other global software stocks a boost: Palantir jumped 7.7%, with SAP, ServiceNow, Accenture, and Salesforce also rising.
Still, analysts are cautious about India's big IT firms because their growth outlook for the first quarter of FY27 (the quarter ended June 2026) is pretty flat.
Instead, mid-cap companies like Mphasis, Coforge, and Happiest Minds are getting more attention for their stronger contracts and steady revenue growth.