IT stocks back in demand

R. Yegya Narayanan | | Updated on: Mar 12, 2018

As the domestic market turned weak over disappointing HSBC India Manufacturing Purchasing  Managers Index (PMI) numbers and the key global indices in the red, investors again took refuge in the IT counters with the CNX IT index jumping by nearly 130 points after 90 minutes of trading this morning.

What probably put the IT stocks in the limelight was also the fact that the Indian rupee again breached the Rs 62 barrier against the greenback.

TCS, Infosys steal the show

All the frontline IT counters, with the exception of HCL Tech and Wipro, made significant gains with TCS and Infosys hogging the limelight.

TCS gained Rs 42.40 to trade at Rs 2,209.40. Infosys was up by Rs 47.85 to trade at Rs 3,528.40, Tech Mahindra jumped by Rs 22.90 to Rs 1,839 and CMC was another major gainer going up by Rs 31.55 to trade at Rs 1,642.20.

However, HCL Tech was relatively subdued, gaining Rs 13.80 to trade at Rs 1,264.85 and Wipro inched up by just Rs 1.35 to Rs 554.30. MindTree was down marginally by Rs 3.70 at Rs 1,555.20.

CNX IT index was the biggest sectoral gainer up by about 130 points.

‘Back to IT’ investor mood

The ‘back to IT’ investor mood was probably driven by weak global markets and a weak rupee. While US Dow Jones index was down by 135 points yesterday, the three key European indices — FTSE, CAC and DAX — also ended in the red yesterday.

In the Asian markets, while Japanese Nikkei was in the green today, both Hong Kong's Hang Seng and Singapore's Straits Times indices were in the negative territory.

The rupee was quoting at Rs 62.44 against the US dollar, giving some boost to the IT stocks as they are largely dependent on foreign clients.

Published on January 03, 2014
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