Fed eases uncertainty, but AI to reset IT: Agarwal

Sowilo Investment Managers Sandip Agarwal says the Feds rate cut removes uncertainty for IT budgets, but AI-driven effort reductions will keep Indian IT growth muted for the next 12 months. He expects FY26 to remain soft, with FY27 improving if client budgets rise. Agarwal says valuations across large IT, midcaps and ER&D remain stretched, and anticipates a wave of AI skill-set acquisitions.