# Nifty IT index jumps 16.77% in July, funds bounce back 2026-08-19T17:31:34+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Technology mutual funds delivered an average return of around 14% in July, rebounding from a 6.40% decline in June. The Nifty IT index rose 16.77% last month, its strongest monthly performance in six years, reversing a 9.56% drop in June. Fund managers increased technology allocation in active portfolios from a record low of 5.9% in June to 6.6% in July. Aditya Agarwal, co-founder of Wealthy.in, said the rally should be viewed as a sharp cyclical rebound rather than the start of a sustained upcycle. He attributed part of the gain to value buying and reversal of excessively negative sentiment, noting that a sustainable recovery requires improvement in deal wins, spending, margins, and earnings growth. Agarwal cautioned against treating the higher allocation as a standalone buy signal. Agarwal recommended that investors not increase technology allocation solely because of the July rebound. For those with little IT exposure and a five- to seven-year horizon, staggered investments are preferable to lump-sum allocations. Risks remain, including slower global IT spending, currency movements, wage pressures, and AI-related disruption. ## Indian Opinion Analysis The Nifty IT index has historically been volatile, with sharp recoveries after selloffs, a pattern seen in 2020 and 2023 as well. The key question for investors is whether US client budgets, which account for over 60% of revenue for large Indian IT firms, are expanding. The next concrete signal will come in October, when TCS, Infosys, and Wipro report Q2 earnings and give guidance. Until then, the rally is sentiment-driven, not earnings-led. ## Coverage - livemint.com Presents market data and analyst advice without editorializing or taking a side. This story was synthesised by AI from the source linked above. Tags: Aditya Agarwal, Nifty IT, Wealthy.in Canonical: https://indianopinion.org/nifty-it-index-jumps-16-77-in-july-funds-bounce-back/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nifty-it-index-jumps-16-77-in-july-funds-bounce-back/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/