Indian Nifty IT rises 16% as global AI interest fades
Indian IT stocks have been climbing for five days straight, with the Nifty IT index up 16% this month, its best run in six years.
This surge comes as global interest in AI-heavy tech shares fades, leading to big drops in indexes like the Nasdaq 100 and Philadelphia Semiconductor Index.
Investors eye Infosys, Wipro AI plays
Investors are now looking at Indian IT companies for lower-risk AI opportunities.
Infosys and Wipro have signaled AI-focused initiatives, while Nifty IT's valuation is much more reasonable compared to US tech giants.
On Thursday afternoon, Wipro led gains with a 2% jump, followed by Tech Mahindra and Coforge.
Analysts warn Indian IT growth risks
Analysts say that despite the momentum, slower deal conversions and cautious spending by clients could limit growth for Indian IT firms next year.
Rising competition from China and heavy investments by US tech giants are also adding pressure.