Veteran fund managers Rajeev Thakkar and Sankaran Naren believe select Indian IT stocks are becoming attractive despite AI disruption concerns, according to a recent report. Naren called the sector a contrarian valuation play with possible risks, while Thakkar argued that some companies may benefit from AI adoption.
As of May 2026, the Nifty IT index has declined approximately 15% over the past year, reflecting investor worries about AI's impact on traditional IT services. However, both managers see opportunities in firms with strong fundamentals and adaptation strategies.
Thakkar, CIO of PPFAS Mutual Fund, highlighted that certain IT companies are investing in AI capabilities, which could drive future growth. Naren, CIO of ICICI Prudential Mutual Fund, noted that valuations have become reasonable after the recent correction, making the sector a potential contrarian bet.
Analysts caution that while AI poses risks to legacy business models, it also creates new demand for AI-related services. The managers' views suggest a selective approach rather than a blanket endorsement of the sector.
