Indian IT firms generated $20 billion in free cash flows last year with over 75% returned to shareholders. Experts highlight the need for a reset as AI disrupts traditional business models. They suggest reinvesting in innovation and strategic investments to leverage future opportunities rather than focusing only on short-term shareholder returns.
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The sensex closed 499 points higher at 78,540 on Monday with gains in financials and IT stocks, influenced by softer US inflation data. Domestic funds recorded a net inflow of Rs 2,228 crore. HDFC Bank, Reliance Industries, ITC, and ICICI Bank were major contributors to the rally.
India and Indonesia discussed the potential sale of BrahMos missiles, highlighting local defence production expansion and bilateral cooperation. PM Narendra Modi and Indinesia President Prabowo Subianto committed to fighting terrorism and enhancing defence collaboration.
Adani Group is officially withdrawing from a $442 million wind power project in Sri Lanka after the government attempted to renegotiate the agreement for better energy rates.
India’s foreign exchange reserves increased by $7.654 billion to $638.261 billion in the week ending February 7. This marks the third straight weekly rise, driven mainly by gains in foreign currency and gold reserves, after previous declines due to currency revaluation and market interventions.
ICICI Securities resolved alleged stock brokers rules violations by paying Rs 80.4 lakh to the markets regulator Sebi. The settlement followed an inspection that revealed non-compliances related to margin trading facility and other issues. A technical glitch was also reported and corrected as part of the settlement terms.
Union finance minister Nirmala Sitharaman proposed the establishment of a Makhana Board in Bihar to enhance foxnut production and processing. She also announced plans for a new urea plant in Assam. The budget aims to accelerate growth and enhance the spending power of the middle class.
Foreign investors have been selling Indian equities rapidly since the start of 2025, with outflows nearing Rs 1 lakh crore. This sharp shift follows US President Donald Trump's return to the White House, leading investors to favor the American economy.
India's economy is projected to become the fourth largest globally by 2026, surpassing Japan. The PHD Chamber of Commerce and Industry anticipates a GDP growth of 6.8% this fiscal year and recommends tax reforms to boost consumption. They also foresee a 25 basis point rate cut by the Reserve Bank, with inflation expected to decline significantly.
Equity mutual funds saw significant inflows in 2024, reaching nearly Rs 4 lakh crore, which is more than double the previous year's figure. Despite the strong performance, inflows are expected to slow down in 2025 due to increased market volatility, impacting new fund launches and equity fund mobilisation.
Three years ago, Liang Wenfeng's hedge fund firm faced a major setback, but he used that time to develop DeepSeek, an AI startup. DeepSeek's breakthrough technology has shaken global AI markets, challenging the US lead. Liang's achievement is notable given his local team, limited resources, and constrained access to advanced tech.