UBS says it stocks are now more affordable
UBS thinks the recent slump in Indian IT stocks could actually be a smart entry point, thanks to growing demand for AI-powered backend integration.
Even though the Nifty IT index has recently corrected, Hartmut Issel, UBS' Head of APAC Equities and Chief Investment Officer, believes this makes tech stocks more affordable—and said India/APAC markets could be even mildly double digits toward the end of the year.
AI integration is the key
If you're curious about investing or just keeping an eye on tech trends, here's some good news: Indian IT firms are well positioned to integrate AI back ends.
Issel puts it simply—"To really get the benefits, somebody has to integrate our back ends"—and that's where these companies shine.
With signs of macro stabilization and valuations looking better, there could be real growth ahead.
Opportunity beneath the surface
It's not just about AI hype. UBS points out that even as global competitors catch up and India's premium narrows, factors such as improving consumer confidence and valuation comfort are still supporting the sector.
So while things look shaky now, there might be opportunity beneath the surface.