Sambre said recent global company commentary triggered market panic, but investors should first understand the real earnings impact before reacting. The fund is “either equal weight or overweight in our IT sector,” he said.
While AI may reduce pricing in some services but could increase overall work volumes as companies modernise applications, he pointed out, adding that investors need deeper analysis before concluding whether AI creates long-term risk or opportunity. Some developments may actually create opportunities over the medium to long term.
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Concerns around Indian information technology services stocks grew after a sharp overnight fall in United States software shares spread to domestic companies, wiping out a large chunk of market value at the start of trade.
The selloff followed rising unease that artificial intelligence tools are moving beyond support roles into direct automation. This intensified after Anthropic expanded its Claude agent with plug-ins for legal work, document review, compliance and enterprise workflows.
The initial pressure was on Software as a Service firms, but worries soon extended to outsourcing and information technology services companies that depend on global technology spending.
Earlier today, Moshe Katri, MD – FinTech & Tech-Enabled Services Investment Banking at Wedbush Securities, also pointed out that Indian information technology services could have a meaningful role in the next phase of artificial intelligence adoption, particularly in integration work and preparing data. “The sector is very well positioned from the infrastructure side of AI, massaging the data, preparing it to basically get fed into those accelerators,” he said.
However, he also cautioned that these projects may take time to gather pace and translate into meaningful business.
The Nifty IT index was down nearly 6% on February 4 while the benchmark Nifty 50 remained mostly flat.
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