New Delhi, Dec. 24 -- After years of underperformance, Indian IT stocks are once again drawing investor attention. The Nifty IT index has risen more than 6% over the last one month, supported by improving visibility on artificial intelligence-led revenues, better signals from the US demand environment, and easing currency pressures. Together, these factors have lifted sentiment toward large technology exporters after a prolonged phase of cautious positioning.

The rally has been steady rather than abrupt. The index has gained over 4% in December so far, marking its third consecutive month of gains. Global technology stocks have also seen an improvement in sentiment, which has helped strengthen the outlook for Indian IT firms.

In the last...