Growth momentum pickup in midcaps much stronger: Ankur Rudra, JP Morgan

economictimes.indiatimes.com:

Ankur Rudra of JPMorgan says on a broad-based basis, we do not have the visibility that industry growth is going to double digits yet and hence, as we go towards the end of FY25, we may not have the momentum we need for FY26 to be a double-digit growth year. More specific sectors are doing well. Some sub-segments like financial services, maybe parts of high-tech are doing well. Some of the midcaps are doing well but broad-based recovery is still elusive. If there is any kind of macro impact, that is the main sort of headwind to watch out for.
A lot of questions are being raised about whether Indian IT services can catch up with the AI boom or whether services providers will manage to beat the product manufacturers dominant in the US? What is your view?
Ankur Rudra: On the AI side of the equation, it is useful to take a step back and remember that tech services companies effectively tend to implement a lot of the new technology that comes by. At the moment, it is AI, before this was cloud. So, to implement AI at an enterprise level, most large enterprises will need IT services companies to help them with doing that to integrate IT and AI into their processes. I think there will be a role for them.

We just feel at the moment it is very early for enterprise AI adoption to take hold of. What most enterprises are realising is that to complete the AI journey, they have to complete the cloud journey, and that has not yet been completed. Cloud journeys got a boost during COVID. They were left incomplete and we are probably