Market dynamics for the Indian Information Technology sector have entered a critical phase following a period of intense volatility and structural reassessment. **Sector Performance and Benchmarks** The Nifty IT index has experienced a significant correction, recently sliding to approximately 30,053. This represents a steep decline of nearly 21% within a single month and a 23% drop over the last year. The index reached a 52-week low of 29,875 during this period, reflecting the heavy selling pressure that has dominated market sentiment. **AI Disruption and Strategic Shifts** Fears of AI-led disruption have been a primary catalyst for recent sell-offs. Concerns spiked after Anthropic introduced new programming capabilities through tools like "Claude Code," which target the modernization of legacy systems. This development initially triggered anxiety regarding the future of traditional IT outsourcing. However, sentiment is beginning to shift as Indian IT majors pivot from defense to active collaboration. Infosys and Anthropic recently announced a strategic partnership to deploy Claude AI for enterprise clients, focusing on sectors like telecom and finance. This move suggests that Indian firms are repositioning as AI enablers rather than victims of automation. **Individual Stock Movements** Major industry players have seen significant price adjustments: - Tata Consultancy Services (TCS) is trading near 2,573 - Infosys has settled around 1,275 - HCL Tech is hovering at 1,328 - Wipro has touched levels near 200 **Technical Indicators and Oversold Territory** Heavy liquidations have pushed the majority of the sector into deep oversold territory. The Relative Strength Index (RSI) for several blue-chip IT stocks has dropped well below the 30 threshold, with some reaching extreme lows between 17 and 22. While these levels often attract contrarian buyers looking for a rebound, analysts maintain a cautious outlook. **Future Growth and Revenue Outlook** Revenue growth for FY2026 is projected to be moderate, ranging between 4% and 6% in USD terms. Despite the current turbulence, the industry is expected to reach a 350 billion USD valuation by 2026. This growth is anticipated to be driven by high-margin segments including cybersecurity, data centers, and specialized AI integration services. **Investment Sentiment** Institutional flows remain a key monitorable. While foreign portfolio investors (FPIs) have been net sellers in the IT space during early 2026, domestic institutional investors have shown interest in the sector at these lower valuations. The market is currently navigating a transition where legacy managed services may shrink, while high-value AI consulting and implementation are expected to expand the addressable market to an estimated 400 billion USD by 2030.