Motilal Oswal Financial Services notes that AI is increasingly deflationary, leading to productivity gains being passed on to clients and compressing growth in the existing business. More companies are now acknowledging that GenAI-led deflation is translating into commercial pressure, suggesting continued headwinds for the IT sector.

Motilal Oswal Analysis’s track record: 6 graded calls · 95% CI 19–81%

Nifty IT IndexBearishCalled 22 May 2026Graded 27 Jun 2026