MUMBAI, February 27 — The IT sector transition will lead to both winners and laggards as artificial intelligence reshapes industry dynamics, veteran investor Ramesh Damani said on Thursday, addressing concerns over the impact of AI on Indian technology companies.
(Related: https://angelrupeez.com/sensex-nifty-slide-weak-global-cues-feb-27/ )
Speaking at the News18 Rising Bharat Summit, Damani said that while artificial intelligence presents new challenges, it does not justify sustained bearishness toward the sector.
“I think the tech industry will come back bigger and stronger. Of course, there is something to fear. But there is no reason to be bearish,” Damani said during the discussion.
IT Sector Transition and AI Concerns
Addressing the IT sector transition, Damani said technological disruption historically creates differentiation among companies rather than structural collapse across the industry.
He noted that artificial intelligence may replace certain lower-end processes but will also generate new opportunities in higher-value services and enterprise modernization.
The remarks come amid volatility in Indian IT stocks, many of which have corrected sharply in recent sessions as investors reassess valuations in light of AI-driven automation trends.
Damani stated that industry shifts of this nature typically result in market re-ranking of companies based on adaptability and innovation.
Historical Context of IT Sector Transition
Damani compared the current IT sector transition to previous industry shifts, including the transition to cloud computing and digital transformation services.
In earlier phases of structural change, some companies lost relevance while others strengthened their competitive positioning.
He said the current environment reflects a similar recalibration process, where firms that integrate AI capabilities into their offerings may emerge stronger.
The Indian technology sector remains a key contributor to benchmark indices on the National Stock Exchange of India and the Bombay Stock Exchange.
Market Reaction and Sector Performance
Recent trading sessions have seen pressure across major IT stocks, with some counters declining by double digits over the past month amid concerns about automation and global demand trends.
Market participants have cited AI-related uncertainty as one factor influencing the sell-off, alongside global macroeconomic conditions.
The IT sector transition discussion has coincided with broader market volatility, as benchmark indices respond to international developments and institutional flows.
Despite near-term stock price adjustments, Damani’s remarks emphasized differentiation rather than sector-wide weakness.
Broader Industry Perspective at Rising Bharat Summit
At the same summit, market participants discussed India’s growing technological capabilities and skilled workforce in the AI domain.
Damani said India’s long-standing expertise in software services provides a base for adapting to new technology cycles.
The IT sector transition, he suggested, should be viewed in the context of innovation cycles that historically reshaped service delivery models.
He did not provide specific stock recommendations but reiterated that structural evolution often benefits companies that invest in upgrading their capabilities.
Authority Reference and Commentary
Damani’s comments were made at a public forum and reported by Moneycontrol, highlighting ongoing investor debate over artificial intelligence and automation within Indian technology firms.
The remarks add to broader discussions among analysts and investors about how AI integration may affect earnings models, hiring strategies, and client engagement patterns in the coming quarters.
The IT sector transition theme continues to influence investor positioning across large-cap and mid-cap technology stocks.
Closing Summary
The IT sector transition driven by artificial intelligence and technological disruption is likely to reshape competitive dynamics, according to Ramesh Damani.
While acknowledging short-term uncertainty, he said historical precedents suggest structural industry shifts ultimately produce stronger market leaders.
Investors are expected to monitor company-specific strategies as the transition unfolds across Indian technology firms.
Ramesh Damani Says IT Sector Transition Will Create Winners and Laggards Amid AI Debate
MUMBAI, February 27 — The IT sector transition will lead to both winners and laggards as artificial intelligence reshapes industry dynamics, veteran investor Ramesh Damani said on Thursday, addressing concerns over the impact of AI on Indian technology companies.
(Related: https://angelrupeez.com/sensex-nifty-slide-weak-global-cues-feb-27/ )
Speaking at the News18 Rising Bharat Summit, Damani said that while artificial intelligence presents new challenges, it does not justify sustained bearishness toward the sector.
“I think the tech industry will come back bigger and stronger. Of course, there is something to fear. But there is no reason to be bearish,” Damani said during the discussion.
IT Sector Transition and AI Concerns
Addressing the IT sector transition, Damani said technological disruption historically creates differentiation among companies rather than structural collapse across the industry.
He noted that artificial intelligence may replace certain lower-end processes but will also generate new opportunities in higher-value services and enterprise modernization.
The remarks come amid volatility in Indian IT stocks, many of which have corrected sharply in recent sessions as investors reassess valuations in light of AI-driven automation trends.
Damani stated that industry shifts of this nature typically result in market re-ranking of companies based on adaptability and innovation.
Historical Context of IT Sector Transition
Damani compared the current IT sector transition to previous industry shifts, including the transition to cloud computing and digital transformation services.
In earlier phases of structural change, some companies lost relevance while others strengthened their competitive positioning.
He said the current environment reflects a similar recalibration process, where firms that integrate AI capabilities into their offerings may emerge stronger.
The Indian technology sector remains a key contributor to benchmark indices on the National Stock Exchange of India and the Bombay Stock Exchange.
Market Reaction and Sector Performance
Recent trading sessions have seen pressure across major IT stocks, with some counters declining by double digits over the past month amid concerns about automation and global demand trends.
Market participants have cited AI-related uncertainty as one factor influencing the sell-off, alongside global macroeconomic conditions.
The IT sector transition discussion has coincided with broader market volatility, as benchmark indices respond to international developments and institutional flows.
Despite near-term stock price adjustments, Damani’s remarks emphasized differentiation rather than sector-wide weakness.
Broader Industry Perspective at Rising Bharat Summit
At the same summit, market participants discussed India’s growing technological capabilities and skilled workforce in the AI domain.
Damani said India’s long-standing expertise in software services provides a base for adapting to new technology cycles.
The IT sector transition, he suggested, should be viewed in the context of innovation cycles that historically reshaped service delivery models.
He did not provide specific stock recommendations but reiterated that structural evolution often benefits companies that invest in upgrading their capabilities.
Authority Reference and Commentary
Damani’s comments were made at a public forum and reported by Moneycontrol, highlighting ongoing investor debate over artificial intelligence and automation within Indian technology firms.
The remarks add to broader discussions among analysts and investors about how AI integration may affect earnings models, hiring strategies, and client engagement patterns in the coming quarters.
The IT sector transition theme continues to influence investor positioning across large-cap and mid-cap technology stocks.
Closing Summary
The IT sector transition driven by artificial intelligence and technological disruption is likely to reshape competitive dynamics, according to Ramesh Damani.
While acknowledging short-term uncertainty, he said historical precedents suggest structural industry shifts ultimately produce stronger market leaders.
Investors are expected to monitor company-specific strategies as the transition unfolds across Indian technology firms.