AI Sparks Indian IT Sell-Off Fears: Experts Debate Future Growth & Valuations

• A global sell-off in software stocks has raised concerns about AI impacting Indian IT services' future growth.
• Arvind Sanger of Geosphere Capital Management believes the market is pricing in long-term headwinds, with AI agents potentially reducing demand for traditional services.
• Sanger questions current Indian IT valuations (20x earnings for 7-8% growth) if AI disrupts core service models.
• Moshe Katri of Wedbush Securities thinks the sell-off is overdone, noting many tech companies still report strong earnings and guidance.
• Katri sees Indian IT playing a key role in AI integration and data preparation, suggesting future spending cycles will benefit the sector despite current sentiment-driven underperformance.