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The BSE IT Index soared 2.49 percent in a broader market that closed 0.8 percent higher at 19,502 after U.S. retail sales data boosted optimism over recovery in the world’s largest economy.
Stocks which led the index rise were Oracle Finance (up 5.3 percent), Infosys (up 2.49 percent) and TCS (up 2.1 percent).
Infosys and TCS touched there 52-week high during trade.
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Export-oriented software companies shed the most today, with the BSE IT index declining 1.4 percent after the recent rally in IT stocks.
Leading the index decline were heavyweights Infosys, Oracle Finance and TCS, which dropped 1.4 percent, 1 pct and 1.5 percent respectively. TCS and Infosys were the top Sensex losers too.
The BSE IT Index ended 2.68 percent lower on Tuesday weighed down by Infosys Technologies’ surprise 2.6 percent drop in April-June profit.
The country’s No. 2 outsourcer said before market hours its sales contribution from Europe fell to about 20 percent from nearly 25 percent a year ago and 23 percent in January-March.
The BSE IT Index continued its downtrend from yesterdays trade and ended nearly 1 percent lower on Tuesday.
Outsourcers that get most of their revenue from exports were weighed down by the rupee that strengthened to 19-month-high against the dollar on Monday and looked to climb further, which could squeeze profit margins of the companies.
Export-focused software stocks did well on Tuesday, helping boost the BSE IT Index 2.5 percent to its second straight day of gains.
The broader market ended 0.6 percent up with financials being among the losers.
Sensex heavyweights Infosys, Tata Consultancy Services and Wipro rose 2.9 percent, 1.4 percent and 2.4 percent respectively.
The BSE IT index ended 3.9 percent higher on Tuesday as the overall 30-share sensitive index ended 0.59 percent down.
Infosys Technologies raised its annual sales forecast as big financial services clients boost orders in an improving global economy, pointing to an industry recovery.
Shares of Infosys Technologies fell over 3 percent to 2,285 rupees on Thursday in a market that saw volatile trade with the expiry of monthly derivatives.