Shares of IT services firms such as Infosys Ltd, Tata Consultancy Services Ltd and Wipro Ltd rose as much as 2.48 per cent to 4.52 per cent.

Morgan Stanley says it expects a turnaround for IT services stocks in 2018 following tepid revenue growth last year

North America is likely to pick up in mid-2018 as banking clients start to spend, while digital deals have started bulking up, which could improve revenue growth rates and visibility, Morgan Stanley says in a note.

Morgan Stanley has raised the ratings for Infosys, Tech Mahindra Ltd and HCL Technologies Ltd to “overweight" and price targets.

The Nifty IT index climbed as much as 3.09 per cent to highest since April 2015, with all stocks in the green. Infosys hit its highest since July 15, 2016, Wipro rose to levels not seen since March 25, 2015, and TCS gained to its highest ever.