India's information technology sector is confronting a fundamental valuation reset as the growth outlook continues to deteriorate, casting doubt on the long-term attractiveness of the market's largest tech names.

The debate over whether IT stocks have reached a floor has intensified over the past six months, with each potential bottom being undermined by fresh negative developments.

5% to 26,946.35 in a broad-based advance that saw all constituents posting gains.

Recent pressure from global peers, including Accenture, has further exacerbated concerns about the sector's trajectory.

The Nifty IT index recently staged a decisive relief rally, climbing 4.5% to 26,946.35 in a broad-based advance that saw all constituents posting gains.

This move effectively halted a severe downturn that had weighed heavily on the sector.

However, the rally appears to be a speculative bounce rather than a reversal of the underlying structural issues.