IT’s long-run resilience versus U.S. peers is back in focus as Indian markets ride optimism despite lofty valuations. From Dec 1999 to today, Nasdaq TRI posted +8.5% CAGR, while Nifty IT TRI logged +7% [1]. The AI boom altered the slope: the underperformance began after the AI wave post-Covid [1].
Dec 2019 to today, Nasdaq TRI +20.8% CAGR; Nifty IT TRI +12.7% [1]. Data tells the story—don’t shoehorn a narrative onto the chart; that mantra showed up in the discussions [1]. Indian IT’s outsourcing image is shifting; “IT was outsourced to us; now it changes slowly” [1].
On valuation, one view flags Nifty’s current PE around the low-to-mid 20s (22.23) [2], while the market stays buoyant on India’s growth story—GDP around 6.5% for FY25 and a $7.3T economy by 2030, with domestic consumption providing ballast [2]. Yet the headwinds are real: IT layoffs and slower net hiring at top firms hint at near-term pressure for the sector [2].
Closing thought: the long-term bull case for Indian IT and broader markets survives, but investors will be watching jobs, innovation momentum, and productivity signals to map the next leg of the journey [2].
References
Indian IT has given similar results to US IT companies in last 25+ years
Indian IT outpaced Nasdaq; AI era brought underperformance; contrasts 1999-2019 and 2019-now CAGR figures; data scaling discussed.
View sourceDiscusses long-term bullishness in Indian stocks/mutual funds despite high valuation, IT layoff fears, and uncertain jobs, GDP growth optimism persists.
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