IT shares rebounds as bargain buying lifts sector after four-day selloff

The Nifty IT index surged 4.39% to 26,901.60 on Thursday, snapping a four-session losing streak as investors returned to beaten-down technology stocks after the recent sharp correction.

The sectoral index had fallen 6.52% over the previous four trading sessions. It remains down 11.58% over the past three months and 30.77% over the past year.

The rally was broad-based, with Coforge leading the gains, rising 5.92%, followed by Infosys (up 5.46%), Mphasis (up 5.34%), Persistent Systems (up 5.27%), HCLTech (up 4.48%), Tata Consultancy Services (up 3.72%), LTIMindtree (up 3.56%), Tech Mahindra (up 3.27%), Oracle Financial Services Software (up 2.83%) and Wipro (up 2.67%).

The rebound followed Wednesday's sharp selloff, triggered by KPIT Technologies' weaker-than-expected near-term revenue outlook, which had heightened concerns over enterprise technology spending and demand from global automotive clients.

Despite Thursday's recovery, investors remain cautious over discretionary IT spending amid global macroeconomic uncertainty. However, analysts continue to see a constructive medium-term outlook for the sector, supported by rising demand for artificial intelligence implementation projects as enterprises move from pilot programmes to large-scale deployments.

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