Why this large-cap fund is betting big on IT now

Summary: With technology stocks under pressure and sentiment weak, a contrarian stance is taking shape inside a large-cap portfolio. Here’s what’s driving that call. Information technology (IT) has been one of the most testing segments of the Indian equity market over the past year. Weak global demand, prolonged softness in US tech spending and persistent concerns around artificial intelligence (AI) disrupting traditional outsourcing models have weighed heavily on sentiment. As a result, the BSE IT Index has fallen close to 20 per cent over the last 12 months, making it one of the worst-performing sectoral indices in this period. For most large-cap fund managers, this has been a cue to stay cautious. For Franklin India Large Cap Fund, it has been an opportunity to lean the other way. A contrarian bet as valuations reset Over the past six months, Franklin India Large Cap Fund has steadily increased its allocation to technology, raising exposure from 13.7 per cent in June 2025 to 15.5 per cent by No