Now Reading: Avoid Indian IT stocks, AI will reset revenue models: Helios CEO
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Avoid Indian IT stocks, AI will reset revenue models: Helios CEO
Avoid Indian IT stocks, AI will reset revenue models: Helios CEO
Dinshaw Irani, managing director and CEO of Helios India, has told rediff.com that investors should stay away from Indian IT stocks because artificial intelligence adoption will force a reset of revenue models…
The Story in Brief
Dinshaw Irani, managing director and CEO of Helios India, has told rediff.com that investors should stay away from Indian IT stocks because artificial intelligence adoption will force a reset of revenue models and hurt earnings growth. He expects the next leg of earnings growth to come from the MSME segment, not from large-cap sectors which are either saturated or in transition. Irani identified the biggest global risks as escalating West Asia tensions and climate disruptions like a super El Niño, which could trigger stagflation. He said India is now ripe to outperform emerging Asia and emerging markets, after a period of underperformance since September 2024.
The Indian Opinion
The interview peddles a familiar narrative: IT stocks are doomed by AI, MSMEs will save the day, and West Asia is the only real risk. This selectively ignores that IT firms themselves are pivoting to AI services, and MSME earnings growth is far from guaranteed. The real test is whether India's IT earnings actually fall, or whether the sector adapts faster than the pessimists assume. Watch the September quarter results for the first clear signal.
Source: rediff.com
This story was synthesised by AI from the source linked above.
