Investors are wondering how long it will take for AI-related investments to convert into substantial IT revenue growth and whether large global IT stocks are overvalued.
But an interest rate hike by the US Fed would be an additional headwind, especially for Indian IT companies because there are lingering concerns over AI spending eating into services and software enterprise budgets, said Kumar Rakesh, an automobile and technology analyst at BNP Paribas Securities India. Renewed investor interest in Indian IT stocks can happen only in a scenario of cyclical recovery, which appears to be delayed, he said.
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