Indian mutual fund managers were seen retreating from the technology sector, dumping stakes in 9 out of 10 major IT stocks in January as fears mounted that artificial intelligence will permanently disrupt the outsourcing model that built the $250 billion industry.

Mutual funds held Rs 395,404 crore worth of IT stocks as of January 2026, down from their December exposure of Rs 397,310 crore, as relentless selling gripped the sector, according to data from Prime Database. Oracle Financial Services Software (OFSS), Wipro, TCS and Coforge have all crashed at least 30% from 52-week highs, while Infosys is down 27% and HCL Tech has shed 18%.

ICICI Prudential Asset Management Company led the exodus, offloading an estimated Rs 1,953 crore in Infosys alone during the month, according to the data. The fund house also dumped Rs 783 crore in Tata Consultancy Services (TCS) and Rs 623 crore in HCL Tech. Only Wipro saw buying interest, with both ICICI Prudential Mutual Fund and Quant Mutual Fund adding to their positions.

According to estimates, net selling by all mutual funds in TCS reached Rs 302.53 crore in January, while Tech Mahindra saw Rs 966.71 crore in net outflows and HCL Tech Rs 817.35 crore.

“We expect continued relevance for IT Services, but their position in the tech value chain is softening,” said Ruchi Mukhija of ICICI Securities. “As AI-driven capital shifts toward infrastructure and AI software, services are losing their share of new tech spend. This prolonged period of subdued growth could drive a further derating in valuation multiples.”

Large-cap IT stocks currently trade at 18 times fiscal 2027 estimated earnings, well above historical troughs like the 11-12 times seen during the global financial crisis and initial Covid-19 outbreak, or the 15-17 times average of the fiscal 2013-2017 slowdown, Mukhija noted.
Also Read | Beyond Rs 6 lakh crore selloff: How TCS, Infosys, other IT giants are reinventing to outlast AI disruption fears

AI’s deflationary grip

The structural threat is stark as generative and agentic AI are delivering immediate productivity gains of 20-40% across core tasks like coding, testing, support, maintenance, and business process outsourcing. This efficiency is eroding IT services’ share of global tech spending, with ICICI Securities projecting an 8 percentage point contraction between calendar 2023-2026 as capital flows toward AI infrastructure and platforms.

Pure-play AI leaders are scaling at “unprecedented rates,” the brokerage said, with OpenAI and Anthropic reaching annual revenue run-rates of $20 billion and $14 billion respectively, backed by over 1 million and 300,000-plus enterprise customers.

“While we believe that these platforms do not replace IT service providers, they are essentially weakening their bargaining power and relevance within the modern tech value chain,” ICICI Securities said.

“IT services may see a growth surge once AI-driven demand outpaces its deflationary effects—but even three years into the AI wave, that tipping point remains elusive,” Mukhija added. “Key monitorables include improvement in profitability per employee, share of new billing models and net new deal TCV.”

Kodak moment for Indian IT?

Motilal Oswal struck a more measured tone, arguing that current valuations may already reflect dire scenarios. The firm’s reverse discounted cash flow analysis suggests the market is pricing in an average 10-year free cash flow compound annual growth rate of just 6.5% which is “among the lowest in the past two decades.”

“This compares to a 40% FCF CAGR in crisis eras such as GFC; a 13% FCF CAGR over FY16-19, when the sector decelerated sharply; and an 8.5% FCF CAGR during FY23-FY26, the latest period of deceleration,” the brokerage said.

On a free cash flow yield basis, large-caps are trading at 5.8% for fiscal 2027 and 6.2% for fiscal 2028 — “levels approaching prior cyclical troughs.”

“The core question is whether AI represents a structural break to terminal growth assumptions or merely compresses growth/margins temporarily,” Motilal Oswal said. “If this is a Kodak moment, then the quantum of downside from here is moot. If it is not, the market is currently pricing an FCF CAGR that is among the lowest in the past two decades.”

Both brokerages acknowledged IT services providers retain critical roles despite AI headwinds. According to ISG, 65% of IT leaders say managing existing data complexity hinders AI progress more than lack of innovation, creating demand for “AI-ready” data architecture that IT services firms can provide.

“New AI tools have accelerated productivity gains but cannot entirely replace the need for IT services,” ICICI Securities said, citing unavailability of AI-ready data at enterprise scale, need for data governance and accountability, and client reluctance to overhaul smoothly running core systems with probabilistic AI platforms.

The brokerage sees potential for a “surge in net-new demand for ERP and legacy code transformations” as AI speeds up refactoring of mission-critical tech stacks. Key areas include legacy code modernization, ERP transformation, replacing point-solution SaaS with AI agents, building AI-ready data foundations, cybersecurity, and physical AI.

“In the long term, answers to whether the industry goes extinct, thrives, or just survives won’t come by easily,” Motilal Oswal said. “In the short term, we stick to forecasting earnings growth for the next two years, which, as shown earlier, seems to be improving.”

JP Morgan analysts argue that it’s overly simplistic to assume that AI can automatically generate enterprise grade software and replace the value IT services firms create across the cycle.

“Indeed, IT Services companies remain the plumbers in the tech world, and if enterprise software/SaaS is rewritten on a bespoke basis by agents – it will need significant services plumbing to work in enterprise context and minimise AI slop,” it said in a recent note.

The brokerage is taking a barbell approach to buy deep value in largecaps like Infosys and TCS, along with growth champions such as Persistent and Sagility.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The restaurant investors behind the success of Dave’s Hot Chicken are making a new nationwide bet on the next-hottest restaurant trend: birria.

Mike’s Red Tacos, a San Diego-based birria chain with just two locations, plans to announce on Tuesday a new franchising initiative that will build hundreds of restaurants across the U.S., with support from early-stage backers Bill Phelps and Andrew Feghali, CNBC can report.

Financial terms of their investment, which took place in early 2025, were not disclosed.

“We just saw that this was a brand and a concept that really had legs to it,” Phelps told CNBC. “And then the critical thing is, we brought down prospective franchisees. … Everyone gave it the thumbs up.”

Phelps said he had never heard of birria before Feghali introduced him to Mike’s.

Traditional birria is a beef or goat stew, slow cooked with spices and chiles to give the meat lots of flavor. Birria tacos, like those sold at Mike’s, use the slow-cooked meat as a filling and usually include a consomme on the side as a dip for the taco.

Once known as a regional Mexican food, birria now appears on 3.7% of U.S. menus, according to Datassential. That’s more than quadruple its menu penetration four years ago, based on the firm’s data, but there’s still a long runway before it reaches ubiquity.

Mexican-inspired fast-food brands such as Qdoba, El Pollo Loco, Del Taco and even Taco Bell have released their own versions of birria. And there’s at least 478 restaurant operators running birria-focused restaurants, according to Datassential.

Mike’s menu also includes burritos, loaded nachos and fries, and birria ramen.

“It appeals to a very broad range of guests — it’s not just your millennials and Gen Zs,” Phelps said, speaking about the customers in Mike’s Red Tacos restaurants. “There’s older people in the restaurant, there’s little kids, so it’s got a very, very broad appeal.”

Phelps co-founded Wetzel’s Pretzels in 1994 and became a founding investor in Blaze Pizza, the fast-casual pizza chain founded by Elise and Rick Wetzel. In 2019, Phelps joined Dave’s Hot Chicken as an investor and CEO, using franchising to expand the chain quickly to hundreds of restaurants worldwide. Last year, private equity firm Roark Capital bought a majority stake in Dave’s Hot Chicken in deal worth roughly $1 billion.

Feghali was one of the first franchisees of Dave’s Hot Chicken. He is also one of the nation’s largest Little Caesars operators.

Together, Feghali and Phelps founded Four Wall Partners, a restaurant franchising investment firm. In addition to being early-stage investors in Mike’s, they will act as advisors and members of the chain’s board.

Vincent Montanelli, who most recently served as chief executive of Wetzel’s, has joined Mike’s to serve as president.

Founded originally as a food truck five years ago, Mike’s Red Tacos opened its first brick-and-mortar location in 2022. Founder Mike Touma plans to open his third location in March; he’ll stay on with the company as a board member and franchisee of the chain’s San Diego locations.

“We put together a deal where [Touma is] going to keep the rights to his stores and future stores in San Diego, and then we’re going to franchise it across the rest of the U.S. and internationally,” Phelps said.

The new team plans to follow the established playbook used by Wetzel’s and Dave’s to grow Mike’s Red Tacos quickly.

“We’re going to be very aggressive where we grow with this, because we’ve seen that we can do that,” Phelps said.

The taco chain has already secured franchising development deals with multi-unit operators for more than 200 locations nationwide, from California to Texas to New England. Some of those franchised restaurants could open as soon as the end of the year.

Phelps anticipates stiff competition from national chains and local taco restaurants alike. However, he said he thinks that the chain’s simple menu, delicious food and an aggressive marketing strategy can help Mike’s overtake rivals.

“We think this can be a winner,” Phelps said.

This article was written by

The £100m-plus Team Valley retail park was put on the market last autumn

A prime North East shopping park with a £100m-plus price tag has been snapped up by a London real estate company.

Retail World at Team Valley in Gateshead – which started life as a manufacturing park in the 1930s – was put up for sale by owners Ares Management last autumn. The sale was launched 10 years after Ares bought the site from UK Land Estates, together with retail parks in Dundee and Derby, in a deal worth as much as £291m.

Ares took on the 370,000 sq ft of retail accommodation, spread over 24 units, and carried out their own major investments which were completed in 2019, adding a host of new food and drink outlets and retail units. Today, Retail World is recognised as one of the region’s standout retail destinations, with 391,000 sq ft of space and a diverse mix of more than 30 brands, anchored by top retailers including M&S Food, Hotel Chocolat, Boots, Metro Bank, TK Maxx, Currys, Dunelm, Costa Coffee and B&M Bargains.

Now Ashtrom Properties UK Limited (AP UK) has acquired the park from a reported £100m-plus asking price, adding to its expanding portfolio. The transaction comes after the company went into exclusive talks with the owners at the end of last year.

London based AP UK is a privately owned real estate company specialising in the acquisition and development of prime real estate, including commercial and office schemes such as Exchange Flags in Liverpool, No. 8 First Street in Manchester, Central Square in Leeds, and Colmore Gate in Birmingham. The deal – heralded as one of the most significant regional real estate deals of the past year – demonstrates the strong appetite for well-placed retail assets which continue to drive strong regional footfall.

Law firm Freeths advised Ashtrom Properties UK Limited (AP UK) on the acquisition. The transaction was led by Freeths Real Estate team, comprising director Ayesha Qayum, partners Craig Jones and Daniel Abrahams and senior associate Sophie Moonshine, together with support from the corporate team.

Guy Lewinsohn, CEO of AP UK, said: “We are delighted to have completed the acquisition of Retail World at Team Valley. This investment aligns with our strategy to expand our UK footprint and invest in high-performing regional assets. We appreciate the dedication and expertise of the Freeths team together with all the advisers involved in bringing this transaction to a successful close.”

Sarah Jelly, director and head of legal at AP UK, added: “Navigating the intricacies of this corporate acquisition was a collective effort of which the AP UK team are very proud. The team at Freeths provided seamless legal support and the technical expertise necessary to bring this complex deal to a conclusion.”

Ms Qayum said: “It has been a privilege to advise AP UK on this landmark acquisition of Retail World. Acting on such a significant transaction for our client has been incredibly rewarding, and I am delighted to have played a role in supporting their ongoing growth within the UK property market.”

The park was marketed by Savills and Vedra Property Group, which said on launching the sale that it “reflects continued investor confidence in the retail park sector, where strong tenant demand and robust footfall are underpinned by the format’s proven role in serving communities and adapting to evolving consumer behaviour.”

Like this story? For more news from the commercial property scene around the regions, visit our dedicated section here for the latest news and analysis within the sector.

Happy Chinese New Year! In 2026, Thailand joyfully welcomes the Year of the Fire Horse (Golden Horse). As today is Tuesday, February 17, 2026, you’re right amidst the heart of the vibrant celebrations.

The streets are adorned with vibrant red lanterns, and the air is filled with the sound of firecrackers and traditional music. Families gather to share festive meals, featuring symbolic dishes like dumplings, fish, and sticky rice cakes, all meant to bring prosperity and good fortune. Don’t miss the lively dragon and lion dances parading through the city, as they are believed to chase away evil spirits and bring blessings for the year ahead. It’s a time of joy, unity, and cultural pride, making it one of the most exciting times to experience in Thailand.

While Chinese New Year isn’t a national public holiday in Thailand, it is one of the most vibrant times to be here, especially in cities with large Thai-Chinese communities.

📅 Key Dates for 2026

Thai-Chinese traditions typically revolve around three specific days:

• February 15 (Day of Spending – Wan Jai): Families shop for offerings, food, and new red clothes.
• February 16 (Day of Worship – Wan Wai): Families offer food and prayers to ancestors and deities. This is the “New Year’s Eve” equivalent.
• February 17 (New Year’s Day – Wan Tiew): Today! People visit relatives, head to temples, and give out Ang Pao (red envelopes).

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🏮 Top Places to Celebrate

If you are looking for the best atmosphere today or for the rest of the week, here is where the action is:

Location	Highlights
Bangkok (Yaowarat)	The “Gold Standard.” Chinatown is packed with dragon dancers, food stalls, and red lanterns. Note: Some official events may be toned down or rescheduled in certain years for royal observances, but the street food and shrines remain active.
Phuket (Old Town)	Beautiful Sino-Portuguese architecture decorated with lanterns. The Baba (Peranakan) culture here adds a unique local flavor to the parade.
Nakhon Sawan	Famous for the “Pak Nam Pho” festival, which features incredible acrobatic dragon and lion performances.
Chiang Mai	Head to Warorot Market for a more intimate, “Lanna-style” Chinese New Year with traditional markets and cultural shows.

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🧧 Tips for the Festival

• Wear Red: It’s the color of luck and prosperity. Avoid black or white, as these are traditionally associated with mourning.
• Temple Etiquette: Expect crowds at major temples like Wat Mangkon Kamalawat (Bangkok). Dress respectfully (shoulders and knees covered).
• Try the Food: Look for Khanom Kheng (sticky rice cakes) and Khanom Thian—these are festive staples you’ll see everywhere.
• Traffic Warning: Chinatown in Bangkok and Old Town in Phuket will be very congested. Use the MRT (Blue Line to Wat Mangkon) in Bangkok to avoid the gridlock.

📍 Immediate Suggestions for Tonight:

• Wat Mangkon Kamalawat (Dragon Lotus Temple): Just a short walk from the MRT Wat Mangkon station. It’s the spiritual heart of the celebrations—vibrant, smoky with incense, and beautifully lit.
• Chinatown Food Crawl: Head to the main Yaowarat Road. Look for the “Golden Horse” themed decorations and try some Bua Loy Nam Khing (black sesame balls in ginger soup)—it’s the ultimate comfort food for a festive night.
• Riverside View: If you want to avoid the densest crowds, the ICONSIAM mall across the river usually hosts impressive dragon dance shows and light displays on their pier during this time.

Year of the Horse: What to Expect

oday (February 17, 2026) marks the official start of the Year of the Fire Horse. In Chinese astrology, the Horse is naturally energetic and independent, but when you add the Fire element, things get significantly more intense.

This specific “Fire Horse” combination is rare—it only happens once every 60 years (the last one was in 1966). Here is what you can expect from the energy of the year ahead:

🚀 The “Double Fire” Vibe

In the Five Elements system, the Horse is inherently a “Fire” sign. Adding the Fire element on top creates a “double fire” effect.

• Speed & Momentum: Expect life to move fast. Decisions that usually take months might happen in weeks. It’s a year of “galloping” forward rather than “slithering” (like the previous Year of the Snake).
• High Volatility: Because there is so much “heat,” tempers can flare easily. The same energy that fuels a breakthrough can lead to burnout if you don’t pace yourself.
• Bold Changes: This is the year for “main character energy.” It favors those who take calculated risks, start new businesses, or make a sudden career pivot.

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🔮 How Your Sign Might Fare

Zodiac Sign	What to Expect in 2026
Horse	Your “Ben Ming Nian” (Zodiac Year): You are in the spotlight. It’s a powerful year for you, but traditional wisdom suggests wearing red (like a red belt or socks) to protect against the “clash” with the Tai Sui (Grand Duke Jupiter).
Tiger & Dog	The “Besties”: These signs are highly compatible with the Horse. You’ll likely feel a surge of confidence and find that things “click” into place more easily than usual.
Rat	The Opposition: The Rat is the direct opposite of the Horse. You might feel more friction or “speed bumps” this year. Strategy and patience will be your best tools to navigate the chaos.
Dragon	Ambition Unlocked: The Fire Horse energy feeds your natural drive. Expect big career opportunities, but watch your ego to avoid unnecessary conflicts

Other People are Reading

Sunil Singhania backed Abakkus Flexi Cap Fund increased its stake in Urban Company, SBI, and 14 other stocks in the first month of calendar year 2026. (Source: ACE MF)

Among these 16 stocks, the fund added the maximum number of shares of Urban Company. Around 23.03 lakh shares of Urban Company were added to the portfolio taking the total share count to 41 lakh in January compared to 17.96 lakh in December 2025.

The flexi cap fund added 4.72 lakh shares of SBI to the portfolio. Around 18 lakh shares of Tata Steel, 14.98 lakh shares of Emmvee Photovoltaic Power, 13 lakh shares of NTPC, and 10.81 lakh shares of Heritage Foods were added to the portfolio in January.

Also Read | Mutual funds increase investments in PSU banks in January; weight hits 3-year high

The fund added 54,074 shares of Oracle Financial Services Software to the portfolio taking the total number of shares to 99,074 in December compared to 45,000 shares in December 2025.

Abakkus Flexi Cap Fund added 26 new stocks in its portfolio in January which includes some stocks such as RIL, Bank of Baroda, Aether Industries, Tata Motors, 360 One Wam, and Edelweiss Financial Services.
The fund added nearly 25.53 lakh shares of Edelweiss Financial Services, 17.50 lakh shares of Bank of Baroda, and 15 lakh shares of Indus Towers to its portfolio in January.
The fund did not make a complete exit from any stock nor it partially reduced its stake in the month of January.
As of January 31, 2026 the fund had an AUM of Rs 2,808 crore compared to an AUM of Rs 2,492 crore in December 2025. The performance is benchmarked against the BSE 500 Index (TRI) and is managed by Sanjay Doshi.

This flexi cap fund holds 42.26% in large caps, 17.10% in mid cap, 27.01% in small caps, and 13.63% in cash and others. The top 10 sectoral allocation by the flexi cap fund is 29.33% in financial services, 12.47% in capital goods, 7.07% in healthcare, and 5.80% in oil, gas and consumable fuels.

Abakkus Flexi Cap Fund is an open ended dynamic equity scheme investing across large cap, mid cap, small cap stock. The investment objective of the fund is to generate capital appreciation and provide long-term growth opportunities through equity and equity related instruments by investing in a diversified portfolio of large cap, mid cap and small cap securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.

The fund follows an in-house investment framework viz. ‘MEETS’, to evaluate key drivers of long-term value creation.

Also Read | HDFC Balanced Advantage Fund cuts stake in HDFC Bank, M&M, HAL, 15 other stocks in Jan

What the fund manager said

Sanjay Doshi, the fund manager of Abakkus Flexi Cap Fund, said in the monthly release that the portfolio as of 31st January 2026 is a reflection of our positive view across breadth of the market with higher allocation towards mid and small cap space while at same time large cap exposure provides stability to the portfolio.

We remain positive on financials, manufacturing, healthcare, consumer discretionary, and chemicals sectors, the fund manager further said.

The release further said that the portfolio has a balance of leaders and potential winners with large cap positions providing stability and liquidity, while mid and small cap positions should support better returns.

Performance

Since its inception, the fund has delivered a return of 0.42%. The best returns by the fund were between January 9 to February 11 where the fund gave 2.53% whereas the worst returns were between January 2 to February 2 where the fund lost 3.16%.

In the month of January, the fund disclosed its first portfolio since NFO.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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