Indian software stocks could register their largest monthly outperformance versus global chip shares: the NIFTY IT index of 10 Indian software exporters is up 16% month-to-date while the MSCI Global Semiconductors & Equipment Index is down 13% over t

2026-07-28

Indian software stocks could register their largest monthly outperformance versus global chip shares: the NIFTY IT index of 10 Indian software exporters is up 16% month-to-date while the MSCI Global Semiconductors & Equipment Index is down 13% over the same period. The divergence indicates a rotation away from AI-driven chip trades into previously battered Indian IT services. South Korea’s KOSPI, viewed as a barometer for global semiconductors and AI investment, is over 30% below mid-June highs. Jefferies last week upgraded the India IT sector to Neutral and said a reversal in AI flows could trigger a temporary rally in the industry.