IT Stocks Oversold, Capital Markets Remain a Structural Story: Nitin Raheja
Alright, folks, let's call a spade a spade: the market's collective freak-out over IT stocks and the boogeyman of AI disruption has become less 'prescient foresight' and more 'mass hysteria at a boy band concert.' While everyone's busy tripping over themselves to declare the end of an era, smart money like Nitin Raheja suggests the selling spree is less about fundamental weakness and more about a severe case of over-reaction. Apparently, even game-changing tech needs time to, well, *change the game*.
Indeed, Raheja of Julius Baer argues that the narrative of AI instantly obliterating the IT sector is wildly premature, portraying the current selloff as overdone. He points to the robust cash flow generation of these tech titans, which positions them perfectly to be the *buyers* in the AI revolution – snapping up promising startups and building the data center infrastructure crucial for future growth. Furthermore, he underscores the broader structural tailwind in India's capital markets, noting the remarkably low household equity allocation, which suggests a significant runway for growth and a deeper pool of domestic capital waiting to be deployed.
