Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: ‘AI Era Will Create Winners And Losers’: Madhusudan Kela; Sees Opportunity In Small Caps | Markets News in Simple Termsand what it means for users..
Last Updated:
Drawing parallels with past technology cycles, Kela says innovation has never made societies poorer, but it has consistently produced clear winners and losers.
Madhusudan Kela, prominent investor and founder & managing director of MK Ventures.
Madhusudan Kela, prominent investor and founder & managing director of MK Ventures, has said investors must stay alert as artificial intelligence rapidly reshapes businesses and markets.
Speaking at the News18 Rising Bharat Summit, Kela said, “Today, virtually everyone has a view on AI. The pace of change is extraordinary,” adding that constant monitoring is essential as developments unfold quickly.
Technology Creates Divergence, Not Decline
Drawing parallels with past technology cycles, Kela said innovation has never made societies poorer, but it has consistently produced clear winners and losers.
“Just as Apple emerged while companies like Blackberry and Kodak declined, a similar divergence will occur in the AI era — even within IT companies themselves,” he said, stressing that adaptability will separate leaders from laggards.
He noted that AI is accelerating its own development, making the speed of disruption faster than earlier technological shifts. While that creates long-term opportunity, it also poses near-term risks.
“The disruption may occur faster than the workforce can retrain for new roles,” he cautioned.
Despite short-term concerns, Kela expressed confidence in India’s medium- to long-term prospects. He said the country’s skilled talent base positions it well to become a global provider of AI solutions and application-layer services.
Markets In A Consolidation Phase
On current market conditions, Kela said returns have largely remained flat over the past 18 months. The small-cap index has declined around 11-12%, and roughly 350 out of 1,000 stocks have corrected by more than 35-40%.
“Having seen multiple difficult cycles over 35 years, periods of prolonged weak returns have historically turned into strong investment opportunities,” he said.
Selective Approach To Small Caps
Kela said he sees emerging opportunities in smaller companies but urged caution.
“This is not a call for indiscriminate investing,” he said, noting that large mutual funds remain structurally tilted toward large-cap stocks and often lack the flexibility to deploy significant capital into smaller firms.
“As investor interest in small caps has diminished, prices have corrected significantly,” he added, suggesting that the coming months could provide a favourable window to accumulate select names.
“Historically, it is in such periods of low interest and sharp corrections that the most meaningful investment gains have been made,” Kela said.
Click here to add News18 as your preferred news source on Google.
Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
February 27, 2026, 14:59 IST
Read More