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A maturing market amid the mayhem
Technology shares rose on Wednesday as Indian firms cheered robust results and guidance from U.S. peer Cognizant Technology Solutions.
Cognizant on Tuesday reported a profit that topped market estimates for the sixth straight quarter, helped by a surge in discretionary projects, and also raised its 2010 revenue outlook.
Shares in TCS rose as much as 4.5 percent to a record high of 871 rupees in trade. Infosys gained 3 percent while Wipro rose 4 percent.
The BSE IT Index, which saw all stocks closing in the green, ended with gains of 3.2 percent as the top sectoral gainer.
Profit sales saw Wipro shares end 0.8 percent lower on Friday after the firm reported a forecast-beating, 31-percent rise in quarterly profit.
The firm said it was seeing strong business environment, which helped pull up sectoral stocks early in the day. The stock had risen as much as 4.2 percent in trade.
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.
Top IT stocks Infosys, Wipro and TCS touched their 1-year highs as the BSE IT index closed 0.7 percent higher.
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.
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.
The benchmark closed 3.6 points down at 12,131.08, while the Nifty ended 0.2 percent higher at 3,661.90.
The BSE Sensex closed 0.74 percent lower on Wednesday as weak Asian markets dampened sentiments and investors booked profits for a third session.