India's IT stocks have seen a significant increase, with major players like Infosys Ltd. and Tata Consultancy Services leading the way with a rise of approximately 7% in November. This surge is attributed to expectations of increased tech outsourcing and a stronger dollar following Donald Trump's election victory, which has generated optimism for US technology spending.

The IT sector in India is outperforming other industries in the country and the broader Asia Pacific region, where the MSCI Asia Pacific Information Technology Index has declined by about 3% this month. Analysts, including Sunil Kaul from Goldman Sachs Group Inc., believe that the sector will benefit from improving demand from overseas clients and anticipated corporate tax cuts in the US.

As foreign outflows reach around $12 billion since early October, Indian investors are turning to IT stocks for stability amidst weak earnings in other sectors. The changing dynamics in the export market, influenced by Trump's early policy signals, including potential tariff increases, further highlight the sector's resilience and growth potential.