Indian IT shares climbed to a five-week high as investors turned cautious on AI-related shares globally, giving legs to the Nifty 50. The prevailing view is that India’s software services stocks offer a good hedge against the unwinding of the AI trade.
But tech bulls still face a mixed earnings picture. September-quarter results from Wipro and Tech Mahindra, announced after the market closed, fell short of analyst estimates. Still, backers of Indian IT may take heart from comments by AI researcher and NYU professor emeritus Gary Marcus at the Bloomberg New Economy Forum.
Meanwhile, currency traders aren’t convinced the rupee is out of the woods despite five straight days of gains. Inflation and high crude prices remain concerns, while regular RBI interventions and rising hedging costs could make Indian assets less appealing.
Indian stocks outperformed Asian peers by the most in 18 months as the AI selloff spread, underscoring India’s appeal as a market less exposed to the global tech boom. The NSE Nifty 50 appears to have formed a double bottom on its daily chart, strengthening the case for a near-term rebound.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing