UBS: AI to Boost Indian IT, Sell-off is a Buying Opportunity

• UBS believes the recent sell-off in Indian IT stocks is a misreading of AI's impact, seeing it as a potential entry point for investors.
• Hartmut Issel, Head of APAC Equities at UBS, states that fears around AI displacing the sector overlook how companies are actually deploying it.
• Issel highlights that the real challenge for enterprises experimenting with AI is implementation and integration, which plays to the strengths of Indian IT services providers.
• He notes that partnerships between AI developers and IT service companies are a natural progression, similar to previous technology cycles.
• UBS sees valuation comfort returning after the recent correction and remains constructive on global equities, including India, with potential for double-digit upside.