New Delhi, June 28 -- The Nifty IT index has fallen more than 27% year to date. Foreign portfolio investors have net sold equities worth Rs.26,801 crore in the IT sector in the year so far (up to 31 May 2026). In June, the IT index slipped to its lowest point in three years as the sell-off has continued.

The weight of the IT sector in the market benchmark-Nifty 50 Index-has now slipped to as low as 7.6% from 12-14% in 2023.

However, several fund managers see IT as a contrarian investment opportunity. Data from Value Research showed that actively managed diversified equity schemes had over Rs.1.3 trillion riding on the IT sector as of 31 May 2026.

So what's driving fund managers' contrarian call, and should investors bet on IT-focused f...