Ajay Bagga On IT Recovery: AI Growth Could Drive Next Rally In Tech Stocks

Is the worst finally behind for India’s IT sector? In this conversation, Ajay Bagga shares his outlook on the rally in IT and pharma stocks amid rising focus on AI and a weaker rupee. He explains how global AI adoption, cloud growth and new enterprise use cases could eventually revive revenue growth for Indian IT companies, even though meaningful AI monetisation is still awaited. Ajay Bagga points out that valuations in the IT sector have corrected sharply to multi-year lows, attracting contrarian domestic investors despite continued caution from foreign funds. He also discusses why pharma remains a long-term structural growth story supported by multiple drivers including currency tailwinds, exports and resilient demand.