Morgan Stanley: India's IT firms set to benefit from AI
Morgan Stanley thinks India's IT companies might surprise everyone in the ongoing AI boom.
Even though there are worries that generative AI could disrupt coding jobs and outsourcing, the brokerage feels these firms are actually set up to build and scale new AI tools.
It adds that AI poses a near-term risk to India's services export momentum and could boost productivity for India's service industry.
Indian tech stocks slump amid AI
Indian tech stocks have taken a hit, down 33% over the past 12 months and another 6% this year, mostly because of concerns about AI.
Still, Morgan Stanley expects earnings to stay solid, with projected growth of 12% for FY2027 and 8% for FY2028.
It's not too worried about long-term threats, seeing these bumps as part of a normal cycle rather than something permanent.