Unloved Indian software stocks a buy for this insurer

Shares of Indian technology companies have been hurt by uncertainty about US visas

The recent underperformance of Indian software stocks, once considered a bellwether of the overall market, is a glaring buy signal for Bajaj Allianz Life Insurance Co.

The S&P BSE Information Technology Index is the second-worst performer among 13 industry gauges compiled by BSE, weighed down by losses in names including Infosys and Tech Mahindra. In contrast, India’s benchmark index has surged to a record.

“We prefer software stocks among defensive sectors such as pharmaceuticals and IT, as they have entered a ‘buy zone’ in terms of valuations after the recent correction,” said Sampath Reddy, chief investment officer at Bajaj Allianz, which manages