KPO
Kensington Premium Opportunities ETF
stock BATS ETF

A couple of days ago, I shared why I believe the Indian economy is well-positioned to perform strongly in an AI-driven world:
[https://www.reddit.com/r/IndianStockMarket/comments/1wt4k0d/why\_indian\_economy\_is\_poised\_to\_do\_extremely\_well/](https://www.reddit.com/r/IndianStockMarket/comments/1wt4k0d/why_indian_economy_is_poised_to_do_extremely_well/)
A core part of my thesis was that fears about the death of India’s IT services industry in the post-AI era are overblown. Today's results from Accenture and sharp rise in its stock provides some validation to my theory.
IT services are extremely important to the Indian economy—not only because of the direct employment they generate, but also because their relatively high salaries support consumption across housing, automobiles, travel, retail and financial services.
For some time, companies slowed hiring because of uncertainty surrounding AI and possible job losses. However, that cycle now appears to be turning. Companies such as Accenture are reportedly hiring aggressively on leading campuses. Accenture may be taking the lead, but I expect Indian IT services companies to follow. The recovery is currently more visible at top campuses, but it should gradually extend to other colleges as demand improves.
As I mentioned in my previous post, this could have similarities with the earlier KPO boom and the expansion of Global Capability Centres in India. AI may change the nature of IT work, but it does not necessarily eliminate India’s role in delivering that work.
This is why I find the broader argument—that AI will cause widespread joblessness, permanently damage the Indian economy and justify the market’s current pessimism—unconvincing.
Oil and geopolitical risks can certainly hurt India in the short term, but these are not necessarily permanent problems. Over time, alternative supply routes and suppliers can emerge, including countries such as Venezuela. Political pressures in the US could also change after the midterm elections.
Ultimately, India’s long-term growth is not determined by one politician or one geopolitical event. It is driven by millions of educated and aspirational Indians. As long as people continue to find productive work, incomes and consumption should keep expanding.
Rupee depreciation should also be viewed in context. It is partly a natural economic adjustment. If we measure the Nifty in rupee terms rather than dollar-adjusted terms, a weaker rupee can also contribute to higher nominal asset prices. Moreover, if IT services return to a stronger growth cycle, higher export revenues and foreign-exchange inflows could eventually provide support to the currency.
There is another potential consumption trigger: the benefits of the 8th Pay Commission could begin flowing through the economy next year.
There is a lot of panic in the market right now. Risks are real, but after looking deeper into them, selling India at these valuations—especially from a long-term, rupee-based perspective—does not make sense to me.
That is why I continue to be long Nifty and not sell in this panic as I see a sharp rally ahead.
This is only my personal view, not financial advice. I would be interested in hearing the strongest counterarguments.
What do you guys think let me know?

A couple of days ago, I shared why I believe the Indian economy is well-positioned to perform strongly in an AI-driven world:
[https://www.reddit.com/r/IndianStockMarket/comments/1wt4k0d/why\_indian\_economy\_is\_poised\_to\_do\_extremely\_well/](https://www.reddit.com/r/IndianStockMarket/comments/1wt4k0d/why_indian_economy_is_poised_to_do_extremely_well/)
A core part of my thesis was that fears about the death of India’s IT services industry in the post-AI era are overblown. Today's results from Accenture and sharp rise in its stock provides some validation to my theory.
IT services are extremely important to the Indian economy—not only because of the direct employment they generate, but also because their relatively high salaries support consumption across housing, automobiles, travel, retail and financial services.
For some time, companies slowed hiring because of uncertainty surrounding AI and possible job losses. However, that cycle now appears to be turning. Companies such as Accenture are reportedly hiring aggressively on leading campuses. Accenture may be taking the lead, but I expect Indian IT services companies to follow. The recovery is currently more visible at top campuses, but it should gradually extend to other colleges as demand improves.
As I mentioned in my previous post, this could have similarities with the earlier KPO boom and the expansion of Global Capability Centres in India. AI may change the nature of IT work, but it does not necessarily eliminate India’s role in delivering that work.
This is why I find the broader argument—that AI will cause widespread joblessness, permanently damage the Indian economy and justify the market’s current pessimism—unconvincing.
Oil and geopolitical risks can certainly hurt India in the short term, but these are not necessarily permanent problems. Over time, alternative supply routes and suppliers can emerge, including countries such as Venezuela. Political pressures in the US could also change after the midterm elections.
Ultimately, India’s long-term growth is not determined by one politician or one geopolitical event. It is driven by millions of educated and aspirational Indians. As long as people continue to find productive work, incomes and consumption should keep expanding.
Rupee depreciation should also be viewed in context. It is partly a natural economic adjustment. If we measure the Nifty in rupee terms rather than dollar-adjusted terms, a weaker rupee can also contribute to higher nominal asset prices. Moreover, if IT services return to a stronger growth cycle, higher export revenues and foreign-exchange inflows could eventually provide support to the currency.
There is another potential consumption trigger: the benefits of the 8th Pay Commission could begin flowing through the economy next year.
There is a lot of panic in the market right now. Risks are real, but after looking deeper into them, selling India at these valuations—especially from a long-term, rupee-based perspective—does not make sense to me.
That is why I continue to be long Nifty and not sell in this panic as I see a sharp rally ahead.
This is only my personal view, not financial advice. I would be interested in hearing the strongest counterarguments.
What do you guys think let me know?