Veteran investor Shankar Sharma has defended Indian IT companies including Infosys, Wipro, and TCS against criticism for India's perceived loss in the global artificial intelligence race. Speaking exclusively to NDTV Profit, Sharma argued that these IT firms have 'received a lot of unfair criticism' and emphasized their significant contributions to India's economic transformation. According to NDTV Profit, Sharma stated that 'Indian IT companies have done an excellent job in building the nation and it would have been unfair to expect them to lead the next frontier of AI in India'. He criticized the broader Indian tech ecosystem, questioning whether 'the remaining 1.4 billion people just sit there and twiddle their thumb' while expecting IT companies to lead AI development.
Veteran investor Shankar Sharma has rejected the common practice of classifying market participants as either bulls or bears, arguing that such categorisation is fundamentally flawed. Speaking at NDTV Profit's Townhall event, Sharma explained that opportunities and risks exist simultaneously across different market segments, making a single label inadequate for capturing his market view. According to reports from NDTV Profit, Sharma stated that when asked whether he was bearish on Indian equities, he responded 'No, I'm not a bear' and revealed he had been putting money into the market from the bottom of March.
Despite his overall bullish sentiment, Sharma clarified that he maintains a selective approach across different market segments. As reported by NDTV Profit, he explained his philosophy by saying 'I am a hare, as I always say', meaning he is both bearish and bullish simultaneously depending on the market segment. The investor specifically revealed his bearish stance on Indian large-cap stocks while expressing considerable optimism about opportunities within the small-cap universe, stating 'I am bearish on Indian large caps. I am very bullish on Indian small caps'. His latest comments defending IT companies against AI criticism demonstrate this selective approach in action.
Sharma outlined his preference for technology-focused investments within the small-cap space, citing India's underrepresentation in technology beyond traditional IT services. According to NDTV Profit reports, he emphasized that 'My view is that in India, the theme that will play out and play out well will be anything to do with technology' and revealed he has been investing in smaller technology-focused companies over the past two years, specifically avoiding IT services companies. His latest portfolio reveals he has no positions in Anthropic, Nvidia or OpenAI, instead preferring to invest in semiconductor companies like TSMC, which he described as 'a big driver of my profits'. This strategy aligns with his cautious approach to direct AI investments while maintaining exposure to technology themes.
Sharma has identified the infrastructure layer of the AI economy as his preferred investment theme, calling it the 'plumbers of AI'. According to NDTV Profit, he flagged the power equipment sector as looking good and highlighted cabling, optical fibres as a good theme. He noted that 'there is still headroom for growth in data center-related stocks in India'. His preference for infrastructure over direct AI investments reflects his cautious approach to the current technology landscape, as he remains 'cool on some of the most hyped names in global tech' including SpaceX, whose valuations he described as 'crazy'. The recent SpaceX IPO, valued at $1.75 trillion, exemplifies the challenges of investing in highly valued AI companies, with analysts noting the company's 'extremely risky short play' characteristics.
