AI Fears Overblown: Investec's Kochhar Sees IT De-rating Due to Slower Growth, Not AI

• Mukul Kochhar, Head–Equities at Investec Capital Services, states AI fears for Indian IT are overstated.
• Weakness in IT stocks is attributed to large companies' naturally slower growth and valuation adjustments, not AI replacing service work.
• Kochhar highlights improved profitability and balance sheets make PSU banks attractive, with stronger loan growth than private banks.
• India's expanding global trade relationships and recent trade agreements are seen as a major structural shift.
• Export-linked sectors like textiles, auto components, electronics, and gems & jewellery are expected to benefit significantly.