IT stocks such as Infosys Ltd, HCL Technologies, LTIMindtree, TCS, Tech Mahindra, Mphasis, Mastek, Coforge, KPIT Technologies, Birlasoft and Sonata Software were among the the top sectoral gainers on Thursday as investors rejoiced a status quo in interest rates in the US Federal Reserve's policy meet on March 19.
The Federal Reserve kept interest rates unchanged in a range of 4.25% to 4.5% and signaled it would reduce rates two more times this year, in line with its previous expectation from December.
Rate cuts in an economy imply that there are more funds with local banks to lend at reduced rates. This boosts business activities and industries in that country. US Fed signaling two more rate cuts this year is likely to boost demand for the Indian software exporters in that country.
The Nifty IT index rose as much as 2.44 percent or 886 pts to 37,109 and BSE IT index climbed 877 pts or 2.46% to 36,504 in early deals today.
IT shares were among the top Sensex gainers with Infosys, TCS ,HCL Tech and Tech Mahindra rising up to 2% on the 30-stock index.
Wipro (1.24%), LTIMindtree (1%), Mphasis (1.51%), Mastek (1.30%), Coforge (0.30%), Birlasoft (4%), Sasken (1.75%) and Sonata Software (1.76%) were among the top gainers on the BSE IT Index on Thursday. Meanwhile, Sensex climbed 438 pts to 75,887 and Nifty rose 137 pts to 23,045 in late morning deals.