Indian shares end a tad higher after Tuesday’s selloff
India’s equity benchmarks closed marginally higher on Wednesday, as IT stocks clawed back some of the previous session’s losses and as metals also rose, overpowering a drop in index heavyweight Reliance and state-owned lenders. The Nifty 50 rose 0.23% to 25,482.50 and the BSE Sensex added 0.06% to 82,276.07. Both indexes advanced about 0.9% earlier in the session, following a more than 1% fall on Tuesday. The IT index advanced 1.6% after a 4.7% fall a day earlier. Rapid developments in AI are spurring questions about the long-term outlook for India’s IT sector, even as executives frame disruption as an opportunity. “While IT companies’ valuations have turned attractive after the recent drop, investors will stay cautious because AI’s impact on earnings growth and margins remains uncertain,” said Amnish Aggarwal, director of institutional research at PL Capital. READ MORE: IT rout drags Indian markets; sector on track for worst month in 23 years on AI fears IT shares, which carry roughly an 11% weightage in the blue-chip indexes, the second-highest, have lost 19.7% in February so far. “There may be an intermittent, technical bounce in IT like in today’s session, but it’s too early to have a constructive view on the sector,” Aggarwal said.