Indian Equities: Fables and Fundamentals

India remains a constructive long-term equity story with earnings resilience, having worked off recent valuation froth while establishing a strategic role in the global AI infrastructure and application layers.

Key Takeaways

• 1.India remains a long-term compounder despite recent underperformance against North Asian markets (Korea/Taiwan) driven by the Gen-AI boom.
• 2.India is not an 'anti-AI' play; it is building a significant footprint in AI infrastructure (data centers and energy) and local application layers.
• 3.Indian IT services are navigating an 'AI-led deflation' period, but are expected to reach a revenue inflection point as new AI orchestration services outweigh legacy revenue erosion.

Table of Contents

• The Long View, and the Short One
• The Earnings Picture
• AI: Promise vs Hype
• Not an Anti-AI Play
• The IT Services Question
• The Price You Pay
• The Rupee Story
• The Bottom Line

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