The Nifty IT index saw a significant increase of 3.3 percent, reaching 41,754.80. This rise was driven by optimism surrounding the potential victory of Donald Trump in the 2024 US Presidential elections.

All ten stocks within the index experienced gains ranging from 1 to 4 percent, with Infosys, TCS, and HCLTech leading the upward momentum. Analysts suggest that if Trump returns to power, there could be a continuation of anti-China policies, including tariffs on Chinese imports. This could be beneficial for India's exports in various sectors, including IT. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that while a full-scale trade war is unlikely, Trump's pragmatic approach may favor Indian businesses.

The Nifty IT index had previously faced declines of 2 percent in September and nearly 4 percent in October, making this rally a notable turnaround amid changing political dynamics.