January effect favours IT stocks. These 5 factors can seal the fate of Nifty bulls

Nifty’s strong start to 2025, with a 1.5% gain in the first two sessions, contrasts with its weak January performance over the past decade. Despite this, the IT sector’s seasonality remains favorable, having outperformed the broader index with positive returns in 8 out of 10 years. While Nifty’s average return is just 0.38%, Nifty IT’s stands at 2.1%. The sector’s significant weight in the index may determine Nifty's month-end performance.