Indian IT Stocks Rally as AI Leaders Urge Caution
Shares of Indian IT companies surge as global AI leaders call for a slower pace of development amid concerns over risks
Indian IT stocks have surged as much as 5.2% on Tuesday, tracking gains in global software shares, after AI executives called for a slower pace of development amid concerns over the technology's risks.
Shares of software companies globally have been battered by concerns that AI could make parts of their business obsolete. India's $315 billion IT industry is seen as especially vulnerable because of its reliance on billable hours, leaving IT stocks among the market's worst performers over the past year.
The IT index was set for its best session since July 2, having fallen about 21% this year, more than twice the decline of the benchmark Nifty 50 index.
Indian IT firms could benefit from a slower pace of AI development, giving them more time to adapt to new models and manage their costs, said Piyush Pandey, an analyst at Centrum Broking.
Faster AI development increases uncertainty for enterprises.
HCLTech led gains on the index on Tuesday, climbing 6.21% after eight straight sessions of declines. Infosys and TCS rose 4.72% and 4.76%, respectively.
The rally comes after Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities after mounting fears that the technology could be misused.