The Nifty IT index rebounded by 2.60%, closing at 30,441.45, as investors showed renewed interest in Indian tech stocks following a significant selloff driven by fears of AI disruption. Recent months have seen the IT sector under pressure due to concerns about slower global tech spending and cautious client outlooks. However, analysts at Kotak Institutional Equities suggest that much of this pessimism is now reflected in stock prices, with corrections ranging from 19% to 39% over the past two months. Despite the current volatility in broader markets, the IT sector is displaying early recovery signs. Companies like TCS, Infosys, HCLTech, and Tech Mahindra are highlighted as preferred picks, expected to benefit from stable deal pipelines and currency support. While growth expectations remain modest, with revenue growth projected at 3–5% for FY2027, the report indicates that the sector is stabilizing rather than deteriorating. Investors are advised to approach with caution, as macroeconomic headwinds and risks associated with AI disruption persist.