AI Disrupts IT, Iran Conflict Hits Oil: Kotak CEO's Market Outlook

Gupta expressed his views on the Indian economy and market outlook at a press conference on Kotak Securities Outlook held today in Mumbai.

He noted that the oil and gas sector's outlook has become significantly more negative due to the Iran conflict, with concerns about rising prices and potential government intervention. He further noted that India has sufficient crude oil reserves but faces shortages in natural gas, LPG, and CNG.

Despite an expert's prediction of an Iranian attack, the conference discussions largely avoided the topic, instead focusing on AI and its potential disruption of the Indian IT services sector. The corporate commentary was largely in line with previous earnings calls, offering few surprises.

The investor sentiment at the conference was generally cautious, with concerns about AI's impact on India's IT sector and valuations that were not seen as particularly cheap.

Global investors were more focused on other emerging markets like Japan, Korea, and China.

While the Indian market is still considered expensive relative to other emerging markets, valuations have decreased, and earnings growth is expected to rebound in the coming years. Pratik noted that the collapse in India's premium relative to other emerging markets is a positive development.

Pratik Gupta also anticipates that the Iran conflict will negatively impact FDI inflows and the current account deficit due to higher oil and gold prices. However, strong local investment flows are expected to continue, and the Indian economy is seen as increasingly resilient to shocks.

- ANI