New Delhi, Dec. 18 -- It could be too early to say that the worst is behind for the Indian IT sector, as disruption led by the emergence of artificial intelligence (AI), demand sluggishness in key western markets, and concerns over economic slowdown in the US remain key threats for the sector. Nevertheless, the sector has seen significant investor interest over the last few months. Since October this year, the Nifty IT index has jumped nearly 15% compared to a just 5% rise in equity benchmark Nifty 50.

On a monthly scale, the Nifty 50 index is down 1.5% in December till the 18th, while Nifty IT is up 3.3%, looking set to extend its monthly winning streak to the third consecutive month.

Year-to-date, however, the Nifty IT index is down 9...