New Delhi, Feb. 23 -- The Nifty 50 could touch fresh highs over the next 12-18 months as valuations hover below long-term averages and foreign selling shows signs of easing, said Nikhil Ranka, chief investment officer (CIO)-equity alternatives at Nuvama Asset Management.

However, he cautioned that India's information technology (IT) companies are staring at an earnings cut, likely to begin in fiscal 2027-2028, amid concerns that artificial intelligence (AI) will compress billings and revenue growth. Edited excerpts:

There is a clear belief amongst market participants that there will be a reduction in the man-hour effort required for IT services. If you see the current model of IT services, it is a per man hour billing that happens for a...