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The correction in Indian IT stocks is not yet complete as artificial intelligence continues to disrupt the sector’s traditional business model, Helios Mutual Fund CEO Dinshaw Irani said, warning of further pressure on both valuations and fundamentals.

Irani said the long-standing manpower-heavy employee pyramid that underpinned India’s IT industry is under strain, with AI expected to squeeze the lower end of the workforce, push costs higher up the chain and reduce the relevance of the billable man-hour model. While Tata Consultancy Services has shown some early caution through restrained hiring and layoffs, most companies are yet to fully prepare for the scale of the disruption, he added.

“There’s a reset which is happening and I don’t think this is done and dusted,” Irani said, adding that AI could lead to “not only the price correction, but even the fundamentals going off a bit.”

The recent sell-off in global and Indian IT stocks, which has erased nearly $300 billion in market capitalisation worldwide, is partly justified due to fears around agentic artificial intelligence, but may be an overreaction, Deven Choksey, Managing Director at DrChoksey Finserv, said.

Choksey said Indian IT majors such as Tata Consultancy Services and Infosys are already repositioning themselves by integrating agentic AI into their workforce and moving away from time-based billing towards solution- and outcome-driven models, which could support long-term growth as global demand for automation rises.

“I guess it is a justified sell-off to an extent,” Choksey said, adding that Indian companies are “systematically adapting to agentic AI workforce,” and that the sector’s long-term prospects remain intact despite near-term market volatility.

Nifty 50 ended at 25,776, up 0.19% from the day’s opening at market close on Wednesday, February 4.

Astha Jain, Reasearch Analyst, Hem Securities has advised to stay invested in Tata Power for price target of around ₹390 to 400 this quarter as well as Tata Motors for price target of around ₹420 to 430.

“With the growing opportunity in the power space, I believe that definitely this company will perform, but we really need to see how they are, because they are also increasing their solar manufacturing,” Jain said. “If anyone has this stock in their holding, then definitely a hold from my side.”

On Tata Motors, Jain explained that one can add more on counter.

“Fundamental seems to be okay, especially if I talk about the Tata Motors PV, what we are expecting? We are expecting a sort of slight rise in the margins going forward. The balance sheet is also in a very good shape. This is the counter which we are advising to our clients to remain invested for the at the initial levels,” Jain told CNBC-TV18.

The shares of Emami rose from the lows of the day, gaining over 6% from the lows, after it announced its results.

The shares of Carysil surged over 6%, rising from the lows of the day after the company annonunced their results.

The shares of Teamlease surged over 11% after the company announced its results.

Net Profit up 68% At ₹21 Cr Vs ₹12.5 Cr (YoY)

Revenue up 9.6% At ₹222.6 Cr Vs ₹203 Cr (YoY)

EBITDA up 46.2% At ₹42 Cr Vs ₹28.8 Cr (YoY)

Margin At 18.9% Vs 14.2% (YoY)

Net Profit down 41% At ₹14.3 Cr Vs ₹24.3 Cr (YoY)

Revenue up 9.6% At ₹673.4 Cr Vs ₹614.4 Cr (YoY)

EBITDA up 8.7% At ₹59 Cr Vs ₹54 Cr (YoY)

Margin Flat At 8.8% (YoY)

Net Profit down 85.7% At ₹1 Cr Vs ₹7 Cr (YoY)

Revenue up 2.5% At ₹670 Cr Vs ₹654 Cr (YoY)

EBITDA up 9.7% At ₹97 Cr Vs ₹88.3 Cr (YoY)

Margin At 14.5% Vs 13.5% (YoY)

(Consolidated)

Net Profit down 14.2% At ₹166 Cr  Vs ₹193.6 Cr (YoY)

Revenue up 20.6% At ₹5,801 Cr Vs ₹4,812 Cr (YoY)

EBITDA up 19.1% At ₹584.5 Cr Vs ₹490 Cr (YoY)

Margin At 10.1% Vs 10.2% (YoY)

(Standalone)

Net Profit up 17.6% At ₹189 Cr Vs ₹160.7 Cr (YoY)

Revenue up 12.7% At ₹2,152 Cr Vs ₹1,910 Cr (YoY)

EBITDA up 27% At ₹309 Cr Vs ₹242.5 Cr (YoY)

Margin At 14.3% Vs 12.7% (YoY)

With a substantial capital expenditure plan and a pipeline of projects with higher power purchase agreement (PPA) pricing than its current operational assets, ACME Solar Holdings, an electric power production company, has set out an ambitious growth trajectory.

According to Bloomberg data referenced in a JM Financial article on February 3, the best upgrades to consensus earnings per share projections in a single year, until the end of January 2026, range between 9.2% and 19.7%.

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The shares of Devyani Int extended its gains in the trading session after the company announced its results.

The shares of IT giant Infosys remained low, trading over 8% lower as fear of Anthropic reigns in on IT stocks.

As the markets continue to move on a volatile path, these are some of the biggest volume-based movers.

The shares of Cera Sanitary declined further after the company announced its losses.

The “SaaSpocalypse,” as Jefferies has called this transition, is the replacement of entire layers of corporate workflows, according to analysts, rather than AI complementing current structures.

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BHEL | Bags Order In The Range Of ₹1,200-₹1,500 Cr From Hindalco

Piyush Goyal, the minister of commerce, made a subtle but pointed statement in the Lok Sabha, stating that “diversification of energy sources will be of paramount interest for India,” but he did not address reports that he might renounce Russian oil purchases under the recently announced US-India bilateral deal, the specifics of which have not yet been made public.

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