AI to drive a new wave of IT spending and if ready, Indian companies could greatly benefit: Pankaj Murarka

economictimes.indiatimes.com:

Pankaj Murarka, CIO, Renaissance Investment Managers, says “the AI wave will be a much longer term wave like we saw in the mid-90s or early 90s till the end of the decade, the dotcom boom. As a result, IT companies in India across largecaps and midcaps, if they execute well, if they have solutions around it and if they build capabilities around AI, will see a huge amount of work flowing to them. This whole wave of elevated IT spends or resurgence in IT spends globally will sustain for this decade. That is my view and that is why I think this is not one of those cyclical rallies in IT, but this is probably a change of trend.”
It has been such a great week. Shouldn’t you be more enthusiastic?
We are nearing the end of the year. It has been a phenomenal year for equities globally and for India as well and now that we are ending on a very high note with the last of the sector which had not participated in this b,ull market for almost 24 months now has also started participating. So, it is time to just calm down and absorb all that we have gained and experienced.

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My point is if the US slows down, historically it is bad news for IT. At least in the initial phase of the slowdown. IT companies are saying we are getting large orders, but it is not translating into reality. IT companies are saying AI is real, but the IT index per se saw guidance cut. There were more IT downgrades than upgrades, but the IT index has given 24% return. Why is that?
I will answer that question, but