IT stocks rebound as AI disruption fears ease; Nifty IT index gains 2.19%

Mumbai: Information technology stocks staged a strong rebound on Tuesday, with investors returning to the sector as concerns over the pace of artificial intelligence development eased fears of a sharp disruption to traditional IT services.

Intraday, the Nifty IT index rallied nearly 5% before paring some gains to end 2.19% higher, making it the best-performing sectoral index. In contrast, the Nifty 50 closed 1.19% lower. HCL Tech was the biggest gainer, rising 4%, followed by Infosys, which gained 3.7%. Mphasis rose 3.6%, while Tata Consultancy Services advanced 2.2%.