The Indian IT sector has witnessed a significant correction this year, with major companies like Infosys, Tata Consultancy Services (TCS), and LTIMindtree seeing their stock prices fall by as much as 33% year-to-date. This decline has led analysts to view the current valuations as attractive from a market perspective. However, there remains uncertainty regarding the impact of artificial intelligence-led disruptions on the sector and how future earnings growth will unfold. These factors contribute to a cautious outlook, suggesting that while stocks may be undervalued, the potential for near-term gains could be constrained until clearer trends emerge. Following the sharp correction, analysts believe IT stock valuations have turned attractive. However, the absence of clarity around AI-led disruption and future earnings growth could cap near-term upside.