New Delhi, June 29 -- Indian IT stocks have significantly underperformed the benchmark indices so far this year, reflecting persistent concerns over slowing global technology spending and macroeconomic uncertainty in key overseas markets.

While the Nifty IT index has declined 28.71% year-to-date, the benchmark Nifty 50 has fallen a comparatively modest 8.32%, highlighting the sector's pronounced weakness. Although IT stocks have staged a 7.13% rebound over the past month, outperforming the Nifty 50's 1.74% gain, analysts believe the recovery remains tentative.

Investors continue to grapple with concerns over delayed client decision-making, weak discretionary spending, tariff-related uncertainty, and the risk of slower economic growth in...