Dinshaw Irani, CEO of Helios Capital, said commentaries from IT companies do not point to further negatives around artificial intelligence (AI), although their commentary on AI remains uninspiring. He described the rally in IT stocks as more of a relief rally.
Irani told NDTV Profit that a decline in crude oil prices would improve market sentiment, noting that the world is suffering from high crude prices. He added that the Reserve Bank of India's intervention would help the foreign exchange market and support the rupee.
On valuations, Irani said India is trading at multi-year lows, while the domestic economy continues to hold up and offers investment potential. He also noted that India is witnessing the worst of rupee depreciation, while remaining among the few countries experiencing broad-based growth.
Irani pointed to flows into Korean technology companies as another factor affecting Indian companies. He added that the majority of flows have shifted back to US markets and that the Indian market has been witnessing selling since last year.
Meanwhile, benchmark indices Sensex and Nifty 50 were trading on a flattish note on Wednesday, after rallying over 1.5% in the previous session after Finance Minister Nirmala Sitharaman addressed the possibility of reviewing long-term capital gains (LTCG) tax and securities transaction tax (STT) at the 2026 Bloomberg New Economy Forum.
That said, the BSE Sensex was trading 0.08% lower at 72,973 levels, while the Nifty 50 was trading 0.14% lower at 22,691 levels at last check.
Among sectors, the Nifty IT index extended gains, rising nearly 1%. However, gains in IT, FMCG and oil and gas stocks were offset by declines in the pharma, PSU Bank and healthcare indices.
READ | 'IT Companies Can Become Growth Stocks For Next Decade', Says Renaissance's Pankaj Murarka
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