Bank of America (BofA) has identified a significant buying opportunity in India's bank stocks, which are currently trading at valuations 1.5 to 2.5 standard deviations below their historical averages. This comes as the Nifty Bank index has fallen 8% since the onset of the Iran war in late February, compared to a 4.7% decline in the benchmark Nifty 50 index. The sell-off was largely driven by foreign investors, who offloaded a record ₹60,655 crore ($6.53 billion) in shares of financial services companies in March. BofA anticipates a rate hike from the Reserve Bank of India later this financial year, which could improve bank margins and earnings outlook. In contrast, the IT sector is expected to underperform, with BofA maintaining an 'Underweight' rating, citing potential slowdowns due to clients reassessing spending amid the rise of artificial intelligence. Despite a 3.1% increase in the IT index since February, the long-term impact of AI could reshape growth trajectories in the sector.