Despite an 11.67% slump in the Nifty IT index over the past year, attributed to AI disruption, geopolitical tensions, and visa fee hikes, Domestic Institutional Investors (DIIs) are aggressively increasing their stakes in IT stocks. DIIs raised their holdings by over 2 points in the second quarter of FY26 in at least four large-cap IT companies, including Persistent Systems, suggesting a belief in the sector's long-term prospects beyond current challenges.