Mumbai: Information technology stocks bounced back strongly on Thursday, with investors returning to the sector after several days of losses.The Nifty IT index rose more than 4.7%, breaking a four-day losing streak and emerging as the top-performing sector on the NSE. The broader market was more muted, with the Nifty 50 gaining 0.7%.The recovery was led by large IT companies with Infosys gaining 5.6%, while Tech Mahindra and Tata Consultancy Services went up 4.5% each.IT stocks have seen a meaningful correction in the recent past, analysts said. "The rise is partly due to the US tech rally and also because we are heading into quarterly results," said Sumit Pokharna, senior vice-president, Fundamental Research, at Kotak Securities.Buying was also strong in mid-cap IT stocks. Tata Technologies jumped 6.5%, while Persistent Systems, MphasiS and Coforge gained between 5-6%.AgenciesNifty IT jumps 4.7%, snapping a four-day losing streakSome brokerages believe valuations have become attractive after the recent fall. "Pessimism has made investors ignore that IT stocks are trading at rare low valuations and these levels have been seen only a few times in the last two decades, and even small positive news could trigger a rebound," said Manish Bhandari, CEO and Portfolio Manager at Vallum Capital.Dinshaw Irani, MD and CEO at Helios India said the broader outlook for India is also improving, though the country has underperformed in recent years. "India has been consistently underperforming the region and the world for the past couple of years. This was due to earnings growth falling to low single digits while other regions saw an AI-led recovery," he said.Growth in India is coming back, and there is some catch-up ahead. Investors should remain invested and gradually increase exposure to mid- and small-caps, Irani said. However, technical indicators suggest caution despite the sharp rally. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the overall trend for the Nifty IT index remains weak as it continues to trade below key moving averages on both daily and weekly charts.He added that momentum indicators are still not supportive, with the index showing weak relative performance compared to the broader market. "The index is also near an important long-term support zone, which has triggered rebounds in the past. While short-term pullbacks or rallies cannot be ruled out, a strong and sustained uptrend is unlikely unless the index moves above the 27,600-27,700 zone," Shah said. Until then, the outlook remains cautious.