Nifty IT drops 1.5% as AI threatens future revenues
The Nifty IT index dropped 1.5% on Thursday, wiping out earlier gains as big names like Infosys, TCS, Wipro, and Tech Mahindra took a hit.
The main worry? Generative AI is starting to threaten how much money Indian IT companies can make—something investors are watching closely.
Kotak cuts global IT growth outlook to 4-5%
Tech is a huge part of India's stock market, and changes in the industry affect everyone from job seekers to investors.
Kotak Institutional Equities just lowered its growth outlook for global IT to 4-5% per year for the next decade and warned that rapid advances in AI could hurt future revenues even more than expected.
Earnings estimates for top tech firms cut by up to 3%
Kotak cut its earnings estimates for top tech firms by up to 3% and slashed target prices by as much as 28%.
Still, they see some bright spots: Infosys, TCS, and Tech Mahindra are recommended for strong cash flow, while Coforge and Hexaware stand out among mid-sized players.
Basically—AI is shaking things up fast, but there are still smart ways to play the tech game.