IT Sector Gains from Rupee Fall Despite AI Fears

India's Nifty IT index has fallen around 24% over the past three months, weighed down by concerns over AI-driven disruptions and a slow growth recovery. Despite this underperformance, Q4 earnings for IT companies are expected to benefit from the weakening rupee. While currency tailwinds may provide some relief, the sector continues to face headwinds from geopolitical uncertainties and the growing threat of AI-induced changes to traditional IT business models.