Indian IT stocks face an AI-driven reset, with growth expectations recalibrated. Fund managers see opportunity in banking and financials, citing recovering credit growth and a bottoming NPA cycle. Automobiles, especially commercial vehicles, also show early recovery signs. While manufacturing and capex themes remain strong, valuations are a concern. Consumption, particularly FMCG, presents an unfavorable risk-reward.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets