Concerns about artificial intelligence disrupting traditional technology services have led to cautious sentiment among investors in Indian IT stocks. However, Rajeev Thakkar (PPFAS Mutual Fund) and Sankaran Naren (ICICI Prudential Mutual Fund) believe there are attractive opportunities within the sector. Speaking at the Groww India Investor Festival 2026 in Mumbai, Naren referred to the current IT landscape as a 'contrarian valuation call,' acknowledging the genuine disruption risks posed by AI. He noted that the market has significantly de-rated IT companies due to fears that AI could diminish demand for traditional coding and software services. Thakkar, however, pointed out that Indian IT companies have historically adapted to major technological shifts and argued that AI-driven productivity may actually increase demand. He cited the economic principle of Jevons’ Paradox, suggesting that lower costs could lead to higher overall consumption. Despite their optimistic views, both fund managers stressed the importance of continuously reassessing the evolving AI landscape. Their insights come at a time when the IT sector is largely out of favor among investors, highlighting the need for disciplined investing and risk management.