New Delhi, July 31 -- India's information technology (IT) sector has had a rough start to 2025. Year-to-date, the Nifty IT index has declined over 18 per cent, in stark contrast to the 4 per cent rise in the benchmark Nifty. The sharp underperformance, particularly a 9 per cent drop in the past one month alone, has made it one of the weakest performing sectors in the market.

However, despite the gloomy backdrop, there is growing optimism about a turnaround in the second half of the year. Improved Q1 earnings, stable macro indicators, and renewed technology demand may pave the way for a gradual but selective recovery, believe analysts.

Market participants have begun to identify early signs of a turnaround in India's IT industry. Om Ghawa...