IT stocks on Wednesday on Wednesday staged a smart come-back rally, led by TCS and Infosys, after the
US Federal Reserve decided to keep rates at zero, boosting investor sentiment in the US - the biggest market for Indian software exporters.
IT stocks were severely battered in the past three sessions, following S&P's downgrading of the US' credit worthiness last week, which created panic among investors.
Shares of the country's largest software services exporter TCS settled for the day at Rs 984.00, up 1.73 per cent from its previous closing price, after hitting a day's high of Rs 1,012 on the Bombay Stock Exchange (BSE).
Similarly, other IT heavyweights like Infosys and Wipro ended the day with gains of 2.88 per cent and 2.53 per cent, respectively.
A similar trend was seen at the counters of other IT companies, with HCL Tech gaining 2.89 per cent, Patni Computer up 2.45 per cent and Tech Mahindra rising by 0.41 per cent.
"IT pivotals staged a comeback on bargain hunting after the steep recent slide triggered by fears of US recession. Fed's decision on interest rates somewhat soothed the ongoing downfall but the sentiments regarding the US recession fear still zooming over the heads of investors worldwide, including India," Shanu Goel, Senior Research analyst-Bonanza Portfolio said.
The smart recovery in the software pivotals was very much in line with the bullish trend in the broader market, with the BSE bellwether Sensex recovering 272.60 points and closing at 17,130.51, snapping a six-session losing streak.
Led by the recovery in these stocks, the BSE IT index settled for the day with gains of 2.41 per cent at 5,163.08 points.
Stocks of export-focused sectors, like IT, were among the worst-affected in the recent market turmoil, as the US and Europe are the main overseas buyers of Indian goods.
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