Sector funds investing in technology shares bounced back, outperforming the broader indices on the way up. The technology sector funds on an average gave 7.56 percent returns in month ended May 23, 2023, while the flexicap funds on an average gave 4.99 percent.

Some of the large IT companies have failed to meet analysts estimates and expressed worries about future growth. Tech stocks came under pressure globally due to the expectation of a recession in the USA or and slowdown in IT spending by the major corporates worldwide. As on May 24, 2023 Nifty IT index quoted at a PE of 25.13 compared to 26.58 a year ago. Sector funds can be looked at for focused sectoral exposure.