Sumit Pokharna from Kotak Securities called the new AI partnership a “step in the right direction” and “the need of the hour” during an ET Now interview. He said the partnership aims to help companies in tough, regulated sectors like telecom, banking, insurance, manufacturing, and software to use AI safely. “They need governance, transparency, compliance, reliability, and security,” Pokharna noted. When asked if big IT companies have an edge over midcaps, he said, “Large companies will have an upper hand because of the bandwidth they have, but we cannot ignore midcap companies who have specialization in niche areas, like Coforge or Hexaware Technologies. They have unique skills, strong focus, and deep customer relationships. They will also benefit—it is not just that larger companies will take the entire cake.” On AI’s impact on revenue and growth, Pokharna explained that Kotak Securities expects a 2% to 3% lower growth over the next three years because of GenAI. “AI risk is not being ignored. The worst impact is expected in 2027, which could be the year when investor pessimism about IT stocks will be at its highest.” About market reactions and valuations, he said, “Markets are currently discounting too much disruption. AI improvements are meaningful but incremental. Current stock prices already reflect low long-term growth. Some quality challengers may benefit from AI rather than suffer from it. We believe the market is pricing long-term AI disruption more aggressively than the evidence justifies, and that overreaction may create investment opportunities for smart investors who can buy value or quality stocks at reasonable valuations.” On possible further stock price falls, Pokharna cautioned, “The narrative that AI will disrupt and reduce working hours and billing rates has created pessimism. IT sector stocks have corrected significantly. It is a falling sword—we cannot rule it out. But this is an overreaction, as full evidence is not yet available. Whenever such negative expectations build up, it often gives opportunities to smart investors.” Industry experts say the Infosys-Anthropic partnership may be the start of many AI-driven deals in the Indian IT space. They advise investors to focus on fundamentals and sector expertise rather than short-term market noise.