Go for tried-and-tested scrips and do not invest aggressively in IT firms

The sharp turnaround is good news for investors who are holding on to these stocks or mutual fund schemes

After a rough 2017, information technology (IT) stocks seem to be making a comeback. In the past three months, the Nifty IT index is up 8.73 per cent – the most among all sectoral indices. The benchmark index, Nifty-50, is down 1.89 per cent over the same period. Even mutual funds schemes investing in the sector have not disappointed. The category average returns of technology funds is 9.25 per cent.

Compare these with returns in 2017 when the sector was a laggard. The S&P BSE IT index returned 10.83 per cent whereas the S&P Sensex rose 27.91 per cent.  

So what explains