Is the global IT stock rout a wake-up call for AI optimists?

But an interest rate hike by the US Fed would be an additional headwind, especially for Indian IT companies because there are lingering concerns over AI spending eating into services and software enterprise budgets, said Kumar Rakesh, an automobile and technology analyst at BNP Paribas Securities India. Renewed investor interest in Indian IT stocks can happen only in a scenario of cyclical recovery, which appears to be delayed, he said.