OnFebruary 25, 2026, Indian IT stocks — led by Infosys, TCS and HCLTech — staged a notable rebound, rising up to4 % in early tradeafter a steep sell-off in the preceding sessions. All 10 constituents of the Nifty IT index traded in the green, with many names recovering a portion of the heavy losses seen recently.

The rebound was driven by a combination ofshort covering, where traders who had previously bet on further declines began buying to close positions, andpositive global software stock moves, including a rally in U.S. tech names that lifted sentiment. Market observers also point to easing fears about AI disruption following reports of partnerships between leading AI firms and enterprise software providers, which suggested collaboration rather than outright displacement of traditional IT services.

For much of February, the IT sector has been under pressure due to concerns that rapid advancements in artificial intelligence could automate key services historically outsourced to Indian firms. This sparked heavy selling that led to one of the sharpest corrections for the Nifty IT index in years, wiping out significant market capitalisation.

Despite today’s rally, experts caution thatnear-term volatility remains, with risks from macroeconomic uncertainty, global demand trends and evolving technology dynamics still in play. Long-term investors with a strong risk appetite may choose toaccumulate selectivelyin top quality names with diversified revenue profiles and solid balance sheets. However, short-term traders may prefer to wait for clearer signs of trend stability before committing fresh funds. Always conduct your own research or consult a financial advisor before making investment decisions.