The Hindu Business Line : Higher oil price shifts focus towards IT stocks

WITH international oil prices ruling at historic high levels, market players have started buying IT stocks as they view this sector is not affected by oil price.

Several broking firms have started advising their clients to shift their portfolio from manufacturing to IT stocks. In addition, the good order position for most of companies is also attracting interest in these stocks.

Active buying in IT stocks was seen from the rise in the BSE-IT index, which gained more than other stock indices. In today's trading, the BSE-IT gained 2.56 per cent compared with 1.69 per cent gain for the BSE Sensex.

Some of the stocks that were bought actively today included Infosys (up 3.34 per cent at Rs 1,537.20 on BSE), Wipro (up 2.60 per cent at Rs 560.85), Satyam Computer (up 2.73 per cent at Rs 339.10) and HCL Technologies (up 1.85 per cent at Rs 319.65).Brokers said there is concern across the world of rising international oil prices, but IT sector is expected to be least affected by this concern.

"IT is still a safe sector to invest in compared to other sectors," said a dealer with a foreign broking firm. He said this is the reason for several FIIs purchasing shares of IT stocks.

Another factor for the rise in the IT stocks is listing of TCS shares next week. "With TCS shares being traded at a premium of over Rs 200 per share over the offer price of Rs 850 in grey market, there is euphoria for IT stocks" said a broker.

Several players said the listing of TCS shares will set new benchmark for Indian IT stocks and post listing there is a possibility of good demand for IT stocks from FIIs.