IT stocks bleed: Should investors buy the dip or exit the sector?

MUMBAI: Following a tepid Q4FY26 performance, weak management commentary and a slowing order book, IT stocks witnessed one of their steepest selling spree last week, wiping out billions of dollars of investors’ wealth.

The Nifty IT sectoral benchmark plunged more than 10 per cent over five sessions, extending its year-to-date decline to 25 per cent as lingering fears regarding AI-driven disruption continue to pressure valuations.