Indian IT's Real Risk: Muted Revenue Growth, Not AI Fears, Says Prashant Paroda

• Prashant Paroda of Allspring Global Investment states that weak sentiment around Indian IT stocks is an overreaction to AI fears.
• He argues that the real risk for the Indian IT sector is its muted revenue growth, not the immediate impact of AI.
• Hedge funds have profited by shorting software stocks, influencing recent market moves and contributing to the selloff in IT shares.
• Dharmesh Kant of Chola Securities highlights a lack of product-led innovation in Indian IT, which remains focused on back-end services.
• Despite growth concerns, Paroda notes that Indian IT services offer lower valuations and pay dividends, unlike many US SaaS companies.