India, Oct. 16 -- Indian IT stocks have staged a strong recovery, with the sector emerging as the best-performing index this week. The rally has added approximately Rs 2.6 lakh crore to the market value of IT companies, supported by better-than-expected quarterly results and renewed investor interest.

Tech Mahindra gained more than 16%, while Wipro advanced 13%. TCS, Infosys and HCLTech each rose around 12%. The rebound follows a period of selling pressure as investors worried that artificial intelligence could disrupt traditional IT services and weaken future earnings.

What triggered the IT stock rally?

1. Global AI stocks face a selloff

A decline in US AI and semiconductor stocks has prompted investors to reconsider valuations acros...