Ajay Bagga believes that the worst is over for the IT sector, although the recovery will be slow. He emphasizes the importance of embracing technologies like generative AI and machine learning to add value and attract market rewards. The midcap rally in the market continues, driven by unexpected movements from foreign institutional investors (FIIs). The recent selloff of shares worth Rs 23,000 crore by FIIs may be related to the withdrawal of Chinese and foreign investments in China. The earnings season has been tepid so far.