INDIAN SOFTWARE STOCKS SET TO OUTPERFORM AI PEERS BY MOST MARGIN IN DECADES

What happened: India's top software exporters surged over 10% this week while a MSCI gauge of global chip stocks fell 7.4%, putting the sector on course for its biggest weekly outperformance since 2004. Key numbers: Nifty IT up over 10% this week and over 22% from its July low, but down about 17% this year. Nifty IT trades below 17 times one-year forward earnings. Why it matters: Analysts cited AI valuation concerns and improving IT revenue growth, with Societe Generale saying foreign investors may rotate into Indian IT. Morgan Stanley said the sector lacks near-term catalysts.

India's top software exporters surged over 10% this week while a MSCI gauge of global chip stocks fell 7.4%, putting the sector on course for its biggest weekly outperformance since 2004.

Analysts cited AI valuation concerns and improving IT revenue growth, with Societe Generale saying foreign investors may rotate into Indian IT. Morgan Stanley said the sector lacks near-term catalysts.