Indian IT stocks could attract renewed global investor interest if capital rotates away from highly valued AI developers towards established technology services companies, according to NSE CEO Ashishkumar Chauhan in the supplied October 29 reporting.
Chauhan said such a rotation could occur over the next one or two quarters. The outlook comes as foreign portfolio investors continue to withdraw capital from Indian equities and GIFT City’s international financial services ecosystem expands.
The potential shift remains uncertain and will depend on valuations, earnings growth, foreign investor risk appetite and the ability of Indian IT companies to monetise AI-related opportunities.
NSE Chief Sees Opportunity for Indian IT Services
Chauhan said Indian IT firms could benefit if investors increasingly favour companies that deploy AI solutions efficiently rather than businesses focused primarily on developing AI models and infrastructure.
Indian IT services companies provide consulting, software development, systems integration and technology implementation for global clients. Their ability to help enterprises deploy AI tools could create new business opportunities.
However, the investment case will depend on actual client spending, revenue conversion, margins and the pace at which AI-related services replace or supplement existing work.
A forecast of capital rotation does not guarantee that foreign investors will return to Indian IT stocks within a specific period.
Foreign Portfolio Investor Outflows Remain a Concern
The supplied report said foreign portfolio investors withdrew ₹3.08 lakh crore from Indian equities in 2026, including ₹48,056 crore in October.
Foreign selling can put pressure on share prices and the rupee, although domestic investor demand, corporate earnings and market valuations can influence the overall impact.
Investors will be watching whether foreign flows stabilise and whether technology companies demonstrate stronger earnings momentum.
The reported flow figures should be checked against official exchange and depository data before publication.
GIFT City Banking Assets Rise to $193 Billion
Banking assets at Gujarat International Finance Tec-City, commonly known as GIFT City, reportedly increased approximately 60% between June and September, reaching $193 billion at the end of September.
The supplied report cited an increase from $120.69 billion in June and attributed much of the growth to foreign-currency deposits and external commercial borrowings.
GIFT City is intended to strengthen India’s position in cross-border financial services and compete with established international centres such as Singapore and Hong Kong.
Growing banking activity could support financing for Indian companies’ domestic operations and overseas expansion. However, asset growth should be evaluated alongside the composition of those assets, funding sources and the underlying economic activity they support.
What It Means for Indian Markets
Indian IT stocks could benefit from renewed foreign interest if investors seek exposure to enterprise AI implementation and technology services.
Meanwhile, GIFT City’s growth reflects the expansion of India’s international financial services ambitions.
However, foreign selling, currency pressure, global economic uncertainty and technology-sector competition remain important risks. Investors should distinguish expectations about capital rotation from confirmed changes in portfolio flows.
Key takeaway: Indian IT services could gain from a shift towards practical AI deployment, while GIFT City’s reported asset growth highlights India’s ambitions in international finance. Both developments require confirmation through actual earnings, capital flows and financial-sector data.
This article is for informational purposes only and does not constitute investment advice.
Why could Indian IT stocks benefit from AI investment?
Indian IT services companies may benefit from helping businesses integrate AI tools, modernise systems and automate processes.
When could global investment rotate towards Indian IT stocks?
The NSE chief reportedly suggested a timeframe of one or two quarters. This is a forecast, not a confirmed event.
Why are FPI flows important for Indian equities?
Foreign portfolio flows can influence equity demand, valuations and currency movements, although domestic investment and corporate earnings also matter.
What is GIFT City?
GIFT City is India’s international financial services centre in Gujarat, designed to support cross-border financial activity.
Why are GIFT City’s banking assets growing?
The supplied report attributed the increase largely to foreign-currency deposits and external commercial borrowings. The original disclosure should be checked for a detailed breakdown.
