IT stocks witness good buying; TCS surges to record high
Mumbai: Led by TCS and Infosys, IT stocks on Thursday saw good buying, gaining up to 3 percent on hopes of recovery in the US as bulk of the business of software services companies here comes from the American market.
Shares of TCS on the BSE rose by 2.10 percent to close at Rs 1,590.45 after hitting a record high of Rs 1,598 in intra-day trade.
Similarly, Infosys gained 1.29 percent to settle at Rs 3,004.75. The stock closed above the Rs 3,000 mark after a gap of nearly two years, after having last closed above the level in April, 2011.
Wipro moved up by 1.82 percent, Tech Mahindra (1.71 percent), HCL Tech (2.29 percent) and Hexaware Tech (3.33 percent).
"IT stocks were in demand on hopes of a recovery in the US growth. Also, post third quarter results by IT companies, these stocks have gained considerably. FIIs are also showing interest in Indian IT companies," said Ashika Stock Brokers, Research Head, Paras Bothra.
Indian IT companies earn over 60 percent of their revenues from US clients.
Led by the gains in these stocks, the BSE IT index closed 1.66 percent higher at 7,059.60.
The IT index has gained nearly 11 percent over the past month, outperforming the BSE 30-stock index, Sensex, which fell by 2 percent during the same period.
The Dow Jones Industrial Average hit a new high yesterday as the US services industry grew at the fastest pace in a year amid optimism that the Federal Reserve will maintain stimulus measures to support the economy.