Business
Selective investing the way forward as AI, valuations reshape market trends: Dipan Mehta
IT Sector: Lingering Uncertainty Amid AI Disruption
When asked whether it is still wise to stay away from IT stocks, Mehta did not mince words.
“Yes, absolutely. I think that there is still a lot of confusion around AI disruption and especially largecap IT stocks seem to be most vulnerable because of the scale. The base effect is a negative and clearly their demand is driven by multi-year multi-billion dollar contracts, so that is becoming more and more scarce for them and I suspect they are facing pricing pressure as well. But midcap IT companies, they may be able to manage the AI disruption far better. We like the numbers which came through from Persistent Systems and Tata Elxsi, both smaller companies with greater client concentration, which was earlier a risk factor but now may be a bit of a benefit for these companies. So, we need to be a bit selective when it comes to software services companies and especially largecap IT services. I do not know how they are going to manage this particular phase in the industry.”
His comments underline a structural shift in the sector, where scale—once a strength—may now pose challenges in adapting quickly to AI-led disruption.
Trent: Strong Momentum, But Valuation Concerns Persist
On the retail front, the conversation turned to Trent, a stock that has seen extended underperformance in the past but is now showing signs of revival. However, Mehta remains cautious.
“No, I think that even their pre-quarter release was quite positive and maybe it is going into a slightly higher growth rate, but still valuations remain quite expensive and my sense is that the company’s return should be in line with the earnings growth. So, around 15% to 20% or thereabout is what can be expected. But look, this entire war and the effect of artificial intelligence on the software services companies, that is going to have an impact on disposable and discretionary spending. So, while the March quarter may be fine, we may see some chinks coming in the June quarter. “So, on the entire consumption theme also one should be a bit cautious or at least reduce your expectations. So, I think that while the momentum is good in Trent, of course, the bonus issue certainly has helped lift the sentiment, but then considering the risk return profile, considering its expensive valuation, I would not want to put more investment into Trent. Having said that, it is a company in which we are invested in, so I would keep the same stance: remain invested, lower your expectations, expect returns in line with what the kind of earnings growth are, but I would not want to buy it at these levels considering the kind of valuations it is trading at,” he added.
The takeaway: existing investors may hold, but fresh entries at current valuations could be risky.
Cooling Stocks: A Seasonal Opportunity
Shifting gears to summer-driven demand, Mehta pointed to a potential opportunity in cooling solutions, driven by rising temperatures.
“It is going to be a very hot summer. So, while you are perspiring inside, you may take relief in the fact that if you have got a play on some of the air conditioning or the air cooling companies, then that may just make managing summer a little bit more palatable. One company comes to mind, usual disclosures of course, is Symphony, which is India’s largest air cooling company and it has been having a torrid time for the last few quarters or so, and clearly because of changing weather patterns and poor monsoon, the performance has been pretty stagnant for the last several quarters…”
While the sector has faced headwinds, seasonal demand could offer a near-term tailwind.
The Broader Picture
Across sectors, Mehta’s message is consistent: be selective, manage expectations, and stay mindful of macro shifts—from AI disruption to changing consumption patterns. In a market that is increasingly nuanced, broad-based optimism may give way to stock-specific strategies.
‘The Big Money Show’ panel breaks down President Donald Trump’s high-stakes Beijing visit as trade, AI and global power dynamics take center stage in talks with China’s President Xi.
Boeing CEO Kelly Ortberg is among the group of American business leaders who have traveled to China with President Donald Trump and is pursuing what could be a sizable deal for the plane-maker.
Ortberg said on a call with analysts last month the visit represents “a meaningful opportunity for us,” though he cautioned that he thinks a deal is “100% dependent on the U.S.-China negotiations and relations.”
“I’m not going to give you the number of airplanes, but it’s a big number,” Ortberg told analysts of the potential order Boeing may land.
He said he is “highly confident” that if Trump reaches an agreement with Chinese President Xi Jinping, the deal will “include some aircraft orders.”
BOEING SECURES $8.6B CONTRACT TO BUILD FIGHTER JETS FOR ISRAEL’S AIR FORCE
A deal for Boeing 737 Max aircraft could be finalized at the Trump-Xi summit. (Jennifer Buchanan/Pool/AFP via Getty Images)
“President Trump has been very focused on supporting us in international campaigns, and he’s been very successful in doing that,” Ortberg added.
Bloomberg reported that China is considering a deal for about 500 of Boeing’s 737 Max jetliners, which would help Chinese airlines in need of new aircraft, according to people familiar with the matter.
The outlet also reported that Boeing and China are in discussions about selling around 100 Boeing 787 Dreamliner and 777X wide-body jetliners, though the deal isn’t expected to be a focal point in this week’s summit and would likely move forward at a later date, with the 737 Max deal the immediate focus.
TRUMP READIES FOR BEIJING SUMMIT WITH XI AS AI CHIP SALES, FARM GOODS TOP AGENDA
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 240.60 | +3.73 | +1.57% |
Orders of jetliners from Boeing are expected to be a key portion of a broader agreement between the U.S. and China if Trump and Xi reach an agreement, along with other farm goods and other items.
Energy purchases may also be on the table because China wants the U.S. to allow tech companies to sell Chinese firms advanced artificial intelligence (AI) chips as the world’s two largest economies race to advance AI capabilities.
Other corporate leaders traveling to China with the U.S. delegation include Tesla and SpaceX CEO Elon Musk, outgoing Apple CEO Tim Cook, BlackRock CEO Larry Fink, Citi CEO Jane Fraser, Cargill CEO Brian Sikes and several other leaders of prominent U.S. companies.
President Donald Trump and Chinese President Xi Jinping are meeting in Beijing this week. (Evelyn Hockstein/Reuters)
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“Besides Boeing and Cargill being linked to purchase agreements, the others are mainly there to deliver demands on critical input supply,” said Reva Goujon, a geopolitical strategist at Rhodium Group.
“This could help the U.S. administration’s messaging that to even be able to discuss a board of investment, China needs to be a reliable investment partner and not weaponize supply,” Goujon added.
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Reuters contributed to this report.
Business
Kajima Corporation 2026 Q4 – Results – Earnings Call Presentation (OTCMKTS:KAJMY) 2026-05-14
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“The sum of the different types of fuel: crude oil, fuel oil, of which we have absolutely none; diesel, of which we have absolutely none – I am being repetitive – the only thing we have is gas from our wells, where production has grown,” de la O Levy said.
The rupee fell 0.1% to 95.8525 per U.S. dollar, eclipsing its previous record low of 95.7950 hit in the previous session.
The rupee has declined 1.4% this week and hit record lows in each trading session between Tuesday and Thursday.
India’s heavy reliance on oil imports leaves the currency particularly vulnerable among emerging markets if the Iran war drags on. The country imports about 90% of its oil needs and about 50% of its gas requirements.
China’s yuan hits 3-year high, stocks dip, as Trump-Xi summit begins
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The Forrest family’s plan to build an eco-resort at the tip of the Ningaloo Reef, estimated to cost $70 million, has been given the final tick of planning approval.
Heritage Foundation senior fellow Steve Yates discusses shifting U.S.-China relations, the push for fairer trade and the limits of economic and strategic cooperation with Chinese President Xi Jinping on ‘The Evening Edit.’
A top OpenAI executive said Wednesday the company would support a U.S.-led global AI body that includes China as competition between the two countries intensifies.
Chris Lehane, OpenAI’s vice president of global affairs, told reporters the U.S. could leverage its advancements in AI to help establish a global framework aimed at building safer, more resilient systems, according to Bloomberg.
“AI, in some level, transcends a lot of the prevailing or traditional trade type of issues,” Lehane said. “There is an opportunity to really start to build something up globally, and have countries around the world, including China, potentially participate.”
Lehane said the proposed organization could resemble the International Atomic Energy Agency, which includes China and sets global safety standards for nuclear energy development.
TRUMP READIES FOR BEIJING SUMMIT WITH XI AS AI CHIP SALES, FARM GOODS TOP AGENDA
OpenAI signaled support for a U.S.-led global AI governance body that could include China, an executive said. (Nathan Laine/Bloomberg via Getty Images / Getty Images)
He added that such a framework could be built by linking the U.S. Commerce Department’s Center for AI Standards and Innovation with AI safety institutes being developed around the world.
Lehane said OpenAI has floated the idea of connecting AI safety institutes, though it is unclear whether the Trump administration would support China’s participation in setting global guidelines.
The comments come as President Donald Trump arrived in China ahead of talks with Chinese President Xi Jinping.
Several business leaders joined Trump on the trip, including Nvidia CEO Jensen Huang. The chipmaker is the world’s most valuable company, with a market value of about $5.3 trillion.
BOEING PURSUES MASSIVE CHINA JET DEAL AS CEO JOINS TRUMP’S DELEGATION TO BEIJING
U.S. President Donald Trump greets Chinese President Xi Jinping ahead of a bilateral meeting at Gimhae Air Base on October 30, 2025 in Busan, South Korea. (Andrew Harnik/Getty Images / Getty Images)
The talks are expected to take place against the backdrop of the ongoing war in Iran, as well as continued U.S.-China tensions over tariffs, artificial intelligence and trade.
The two countries could discuss new commitments by China to purchase U.S. agricultural products and jetliners, while restrictions on the sale of advanced AI chips remain a potential sticking point.
Ahead of the visit, former White House AI adviser David Sacks weighed in on the intensifying AI competition between the two countries on “The Claman Countdown.”
David Sacks, White House Artificial Intelligence (AI) and Crypto czar, during The White House Digital Assets Summit in the State Dining Room of the White House in Washington, DC, US, on Friday, March 7, 2025. (Chris Kleponis/CNP/Bloomberg via Getty Images / Getty Images)
“I do think that there are things that may be in our common interest, and it’s worthwhile to explore having those conversations,” he said.
“The fact is, we have to still protect from against each other. So I think it’s going to be a little bit limited in terms of what we can achieve there.”
The discussions come as concerns grow over advanced AI systems, including Anthropic’s Mythos model, which has raised alarms about its ability to identify long-standing security vulnerabilities.
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Sacks said the U.S. and China could potentially reach an agreement on new cyber standards, noting that neither country wants “rogue actors” using AI for harmful purposes.
FOX Business has reached out to OpenAI and the White House for comment.
FOX Business’ Eric Revell and Nora Moriarty contributed to this report.
Operator
Hello, and welcome to Fossil Group Q1 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded. And this call may not be reproduced in whole or in part without the company’s permission. I will now be passing the call over to the presenters. You may begin.
Christine Greany
The Blueshirt Group, LLC
To remind you that information made available during this conference call contains forward-looking information, and actual results could differ materially from those that will be discussed during this call. Fossil Group’s policy on forward-looking statements and additional information concerning a number of factors that could cause actual results to differ materially from such statements is readily available in the company’s Form 8-K, 10-Q and 10-K reports filed with the SEC.
In addition, Fossil assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. During today’s call, we will refer to constant currency results as well as certain non-GAAP financial measures. Please note that you can find a reconciliation of actual results to constant currency results and other information regarding non-GAAP financial measures discussed on this call in Fossil’s earnings release, which was filed today on Form 8-K and is available in the Investors section of fossilgroup.com.
With that, I’ll now turn the call over to Franco to begin.
Franco Fogliato
CEO & Director
Good afternoon. Thank you, Christine, and welcome, everyone. We’re pleased to begin the year with strong
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