After A 30% Correction, Can IT Emerge Stronger In 2026? Here's The Answer

After a deep correction of nearly 30% from its peak, the IT sector enters 2026 at a very different starting point. Valuations have cooled meaningfully, while fundamentals are gradually improving. Revenue growth visibility is stabilising, deal flows are picking up, and client confidence is beginning to return after a prolonged slowdown. With expectations now far more realistic, the risk-reward equation for IT looks healthier than it has in recent years. The key question for investors is whether the sector can move from being a sidelined trade to a broader portfolio allocation theme. If earnings momentum strengthens and demand recovery sustains, IT could once again attract meaningful fund flows in 2026, supported by a combination of improving fundamentals and attractive valuations.