Market Outlook - The Chief Investment Officer at Truist Wealth, Keith Lerner, indicated that fears regarding a government shutdown are currently muted, with investors not overly concerned [1] - Historically, during the 20 past shutdowns, the S&P 500 has remained flat and increased 50% of the time, suggesting that short-term volatility should not prompt drastic portfolio changes [1][2] - The upcoming earnings season, starting in two weeks, is expected to be a significant market driver [1] Economic Impact - Concerns about stagflation are present, with Moody's indicating that each week of shutdown could impact quarterly GDP by approximately 0.1% [2] - Despite the shutdown, the Atlanta GDP estimate for the quarter remains around 3.9%, indicating that the shutdown may not drastically alter economic conditions [2] - The shutdown adds to economic uncertainty in the short term, complicating the overall outlook due to less available data [2] Sector Focus - The primary theme for the firm's bullish market outlook is centered on AI and technology, which are expected to continue strong profit growth despite the government shutdown [3] - The technology sector has seen a 30% increase over the past year, which is not indicative of a bubble, as true bubbles typically exhibit closer to 100% year-over-year growth [3] Growth Stocks - A list of the 12 best growth stocks to buy now has been compiled, focusing on those popular among elite hedge funds and analysts [4][6] - The methodology involved using the Finviz stock screener to identify top growth stocks, ranked by the number of hedge fund holders as of Q2 2025 [6][7] Company Highlights - **Infosys Limited (NYSE:INFY)**: Collaborating with Telenor Shared Services to modernize HR operations through Oracle Fusion Cloud HCM, enhancing employee productivity and experience [9][10][11] - **LiveRamp Holdings Inc. (NYSE:RAMP)**: Launched new AI capabilities, including agentic tools and segmentation, to improve customer outcomes and enable secure data collaboration [12][13][14]

Core Insights - Infosys has launched the Infosys Customer Experience Suite for Salesforce, enhancing its collaboration with Salesforce to support enterprises in their digital transformation initiatives [1][4] - The suite leverages Infosys Topaz and Salesforce's agentic AI capabilities to automate customer interactions, streamline processes, and enhance personalization [2][4] - The solutions aim to drive measurable efficiencies across sales, services, and marketing channels, ensuring operational success for enterprises [2][4] Company Developments - Infosys deployed Agentforce SDR to improve the sales process for a leading research institute, significantly reducing response times and addressing inefficiencies [3] - A renowned media house transformed its customer service operations using Salesforce's agentic AI solutions, resulting in reduced transactional inquiries and improved customer satisfaction scores [3] - The collaboration with Fluido, an Infosys company, has been pivotal in driving Salesforce-powered transformations for clients, including VTT, a leading research organization in Europe [4][5] Technology and Innovation - The Agentforce platform represents a new evolution in AI services, utilizing generative AI and agentic AI capabilities to enhance enterprise and customer operations [4] - Infosys emphasizes the integration of cutting-edge technology and a deep understanding of client needs to foster sustainable growth and productivity in an AI-driven environment [4][5] - The solutions are designed to ensure compliance with ethical and regulatory standards while supporting real-time decision-making and dynamic customer interactions [2][4]

Core Viewpoint - The Indian IT sector is experiencing a muted outlook as indicated by a 7-8% decline in the Nifty IT index over the past three weeks leading up to the second quarter earnings season [1] Group 1: Market Performance - The Nifty IT index has decreased by 7-8% in the last three weeks, suggesting a negative sentiment in the market [1]

RT Matt Forney (@realmattforney)BREAKING: a whistleblower has provided extensive information on how Indian IT consulting firms Infosys and Wipro engage in discrimination against non-Indians and facilitate Indian visa fraud:"ok so the general flow i've witnessed is this: higher end contractor (H1B typically) is hired through Infosys. immediately starts asking for resources. the easiest ask is QA resources. those will be cheap and they get them from some farm in India. but regardless of the job function, the ...

Core Insights - Infosys and Sunrise have deepened their partnership to enhance IT transformation and AI adoption, focusing on operational efficiency, data security, and customer experience through technology deployment [1][6] - Infosys has developed a comprehensive suite of AI solutions, including Infosys Topaz for generative AI, Applied AI with AI Cloud, and various AI & Automation Services [2] - The acquisition of In Semi has bolstered Infosys' R&D capabilities in AI, 5G, and high-performance computing, while collaborations with industry leaders like NVIDIA, ServiceNow, and Intel further expand its AI capabilities [3][4][5] Partnership Developments - The partnership with Sunrise aims to leverage AI, analytics, and Infosys Topaz to enhance operations and deliver personalized digital experiences [1][6] - Infosys has integrated its Topaz with NVIDIA's NIMs to create solutions such as TOSCA Network Service Design and a generative AI-powered smart networking operating center [4] - Collaboration with ServiceNow has led to the development of a product that integrates the Now Platform with Infosys Enterprise Service Management Cafe, improving enterprise business services [5]

Core Insights - Infosys Limited is investing ₹300 crore to establish a new campus in Mohali, covering 30 acres of land [1] - The first phase of construction will involve 3 lakh square feet, creating 2,500 new jobs [1] - A subsequent phase will develop an additional 4.80 lakh square feet [1] Company Expansion - Infosys has been operating in Mohali since 2017 and is now expanding its presence in the city [2] - The company has received strong support from the Punjab state government for this project [2] - Sameer Goel, head of the Mohali center, expressed satisfaction with the expansion and the support received [2] Government Initiatives - The Punjab state government has implemented initiatives that have attracted further investments, including a 45-day approval process for industrial projects [3] - The minister noted that there is a growing interest from investors to invest in Punjab [3]

Core Insights - Infosys Limited is investing Rs 300 crore to establish a new campus in Mohali, indicating a strong commitment to the region [1] - The new campus will cover 30 acres and initially construct 3 lakh square feet of space, which is expected to create 2,500 jobs [1] - This expansion is supported by the Punjab state government's investment-friendly initiatives and quick project approvals [1]

Core Viewpoint - The new $100,000 fee for H-1B visas imposed by the U.S. government is expected to disrupt the traditional operational model of India's $283 billion IT industry, forcing significant reforms in how Indian IT companies supply technical personnel to U.S. projects [1][2]. Group 1: Impact on Indian IT Industry - The Indian IT sector is highly dependent on the U.S. market, with approximately 57% of its total revenue coming from there, and it was the largest beneficiary of H-1B visas, accounting for 71% of approvals last year [2][3]. - Major Indian IT firms like Tata Consultancy, Infosys, and Wipro have built their business models on a low-cost arbitrage strategy, sending engineers to the U.S. at significantly lower salaries than their American counterparts [2][3]. - The new visa fee structure will make the current model unsustainable, leading to increased costs for deploying Indian professionals to U.S. client sites, which may weaken their competitive position against U.S. firms [3][4]. Group 2: Financial Implications - If Indian IT companies continue to utilize H-1B visas under the new fee structure, their profit margins could shrink by approximately 1%, resulting in a potential profit reduction of about 6% [3][4]. - For instance, Infosys could face costs of at least $250 million for obtaining 2,504 new H-1B visas in the 2024 fiscal year under the new regulations [3][4]. Group 3: Strategic Responses and Future Outlook - The new regulations are seen as a significant challenge, with analysts suggesting that Indian IT firms may need to reassess their business strategies, including pricing and project delivery models [4][5]. - The Indian IT industry is also awaiting clarity on a proposed 25% tariff on outsourcing services from the U.S., which adds to the uncertainty and pressure on revenue growth [5][6]. - Despite the challenges, H-1B visas remain crucial for maintaining key client relationships in the U.S., as they allow Indian engineers to manage sensitive projects on-site [5][6].

Core Insights - Infosys is expanding its strategic collaboration with Sunrise to enhance IT transformation and customer experience through advanced technology solutions [1][4]. Group 1: Collaboration and Objectives - The partnership aims to create a modern, agile, and secure technology foundation for Sunrise, focusing on IT transformation, data security, operational agility, and future AI integration [1][2]. - Infosys has been instrumental in streamlining Sunrise's IT landscape by consolidating multiple vendors and transitioning various applications, which is crucial for advancing Sunrise's IT transformation [2][3]. Group 2: Technological Advancements - Infosys will leverage its expertise in AI, analytics, and data, including its AI-first offering, Infosys Topaz, to help Sunrise become an AI-powered organization [3]. - The collaboration is expected to unlock new business value for Sunrise by enhancing operational speed, efficiency, and quality through data-driven insights and intelligent automation [3][4]. Group 3: Leadership Statements - Anna Maria Blengino, CIO of Sunrise, emphasized the importance of customer experience in their technology transition, highlighting the collaborative efforts between Sunrise and Infosys [4]. - Upendra Kohli from Infosys noted that the partnership reflects a shared vision for the future of telecommunications, focusing on innovation and data security [4].

Core Viewpoint - The imposition of a $100,000 fee on new H-1B applications by the US is expected to significantly impact Indian IT companies, leading to increased operating costs and a decline in stock performance within the sector [1][5]. Group 1: Market Performance - Information technology stocks were the worst performers on Monday, with the Nifty IT index dropping 3 percent and experiencing over $10 billion in market capitalisation erosion [1]. - The NiftyIT index has seen losses ranging from 1.7 to 4.7 percent, with mid-size companies like Persistent Systems, Coforge, LTIMindtree, and Mphasis falling between 4.3 to 4.7 percent [2]. - Over the past week, the NiftyIT index has declined by over 1000 points, attributed to slower deal-making in the US and pricing pressures [2]. Group 2: Revenue Impact - Despite a reduced dependency on H-1B visas, the US still represents nearly 60 percent of revenues for Indian IT companies, indicating a potential near-term negative impact on stock prices due to protectionist risks [3]. - Approximately 71 percent of H-1B visa beneficiaries are Indians, highlighting the significance of this visa category for the Indian IT sector [3]. Group 3: Cost Implications - The new H-1B visa fee will increase operating costs for Indian IT services companies, compounded by a potential 25 percent tax under the proposed HIRE Act for US companies outsourcing to foreign entities [5]. - The top 12 IT companies are expected to see an impact on their earnings ranging from 1.5 to 12 percent due to the new visa costs, affecting them by 14 to 188 basis points [6]. Group 4: Industry Outlook - InCred equities downgraded the IT sector's rating to Neutral from Overweight, citing new regulations as a factor contributing to macroeconomic uncertainty [7]. - Key challenges for FY27 revenues and EBIT margins include rising cost pressures, a decrease in onsite roles, and potential offshoring of existing onsite roles [7].