Bengaluru, Oct. 16 -- India's beaten-down information technology (IT) stocks are rebounding as fears that artificial intelligence (AI) will disrupt traditional tech services ease and investors rotate out of a global tech sell-off, even after a weak September quarter for the sector's biggest names.

Shares of India's four of five largest IT services companies rose by as much as 8% on Friday, extending gains even after a muted September quarter. Three of the top four, Tata Consultancy Services Ltd (TCS), HCL Technologies Ltd and Wipro Ltd, posted their weakest September-quarter performance in three years.

The rally came as technology stocks sold off in South Korea, with the Kospi's 14% decline this week pointing to a shift in global invest...