Money on the markets

A maturing market amid the mayhem

IT stocks shine in a weak market

August 10, 2009

INTERNET-DISRUPTION/The BSE IT index gained 2.6 percent in choppy but dull trade on Monday.

Top IT companies posted smart gains with Patni Computer leading the sectoral index with a 7 percent rise. Shares of Wipro, TCS and Infosys touched their 52-week highs.

Many of these firms reported better-than-expected Q1 numbers last month.

The rupee movement versus the dollar has also been supportive for this industry, which receives significant revenue in foreign currency. The rupee has strengthened to below 48/dollar from near 52/dollar levels in March this year.

According to a report on global outsourcing and offshoring activity by the Everest Research Institute, India continues to capture a large share of new offshore centres being established in Asia.

Investors seem to have been rewarded well with the IT index showing a year-to-date surge of over 80 percent. Do you think there is still more steam left in this sector?

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