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IT stocks surge on result hopes

Software companies' stocks, led by Infosys Technologies, were the centre of brisk activity, pushing the IT index over by 4 per cent on BSE.

twitter-logoPTI | March 25, 2011 | Updated 17:14 IST

Software companies' stocks, led by Infosys Technologies, were the centre of brisk activity, pushing the IT index over by 4 per cent on BSE, following a flurry of buying by funds on expectations of encouraging fourth-quarter earnings.

Further, Oracle Corp, the US-based supplier of database software, which reported better-than-estimated third-quarter profits, also buoyed the trading sentiments here.

The 10-share, BSE IT index was the top performer among sectoral indices and rose by 245.11 points or 4.02 per cent to 6,344.62 level after touching an intra-day high of 6,373.79 on significant gains IT bellwether Infosys Technologies and its peers TCS and Wipro.

Meanwhile, the BSE benchmark Sensex ended 464.90 points, or 2.53 per cent higher at a two-month high of 18,815.64.

According to market experts, buying activity in software exporter companies stocks gathered momentum on hopes of encouraging fourth quarter earnings. Besides, speculations that global economic recovery will be sustained, also buoyed the trading sentiments.

The country's largest software exporter Tata Consultancy Services extended its gains for yet another session, rising by 1.8 per cent to Rs 1,112.70 a share on reports of it bagging a contract for supplying banking software technology solution to Shanghai Rural Commercial Bank.

Infosys Technologies also rallied, climbing 5.23 per cent higher at Rs 3,162 a piece, while Wipro Ltd climbed 3.68 per cent to Rs 455.85 a share.

Stocks of Financial Technologies shot up by 6.95 per cent to Rs 622.60 on reports that the company's commodity's platform, Multi Commodity Exchange (MCX) may get listed on the bourses by September this year.

Other gainers included Oracle Fin (up 3.20 per cent), HCL Technologies (up 2.27 per cent) and Tech Mahindra (up by 0.25 per cent).


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