IT stocks, Feb. 17 -- The sentiment around IT stocks seems to be shifting, as visible in the over 1% jump in the technology gauge of the Indian stock market. The Nifty IT index extended its rebound on Tuesday, February 17, showing early signs of a trend reversal after last week's sharp selloff.

Investors bought the dip following a Rs.4.86 lakh-crore erosion in market capitalisation during the last nine sessions, beginning February 4, spooked by fears that new artificial intelligence (AI) tools like Anthropic are likely to put pressure on the traditional headcount-based outsourcing model.

Investors feared that in the coming quarters, AI adoption could create headwinds for deal wins, potentially impacting topline, making close monitoring ...