I.T. Stocks Rally 16% In July: Is The Biggest Comeback Still Left Or Will Profit Booking Begin?

The I.T. sector has staged a strong comeback, with the I.T. index gaining 16% in July, marking its biggest monthly rise in six years. Thomas V. Abraham, Research Analyst, Mirae Asset Sharekhan, believes lower valuations, AI adoption, and improving deal momentum have supported the recovery. However, he cautions that the long-term impact of AI is still evolving and investors may see some profit booking after the sharp rally. While valuations remain below historical averages, the sector could have further upside beyond short-term corrections.