CorporateIT stocks in demand as acquistion clicks
Wipro finally ended at Rs 625, up 1% from the previous close and Infosys settled flat at Rs 2,323.
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TCS was up 1.5% at Rs 654.
HCL Technologies soared to a high of Rs 339 and finally ended 4% higher at Rs 654.
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(Updated at 1054hrs)
IT stocks have shown strong gains on the back of acquisitions by IT majors.
Today, the index opened at 4,644 and touched a high of 4,698. It is now up 1% at 4,674. The IT index has surged 10% from its close on November 3, 2009.
Among the three major deal makers - HCL Technologies has surged 16% in the same period. The stock is up 1% today at Rs 325. Infosys jumped 8% in the past week and is now trading flat at Rs 2,315. Wipro has advanced 1.3% today to Rs 624, taking its gain since November 3, 2009 to 7.6%.
TCS is up 1% at Rs 652. Moser Baer has added 1.5% to Rs 81. Rolta India has gained 2.2% at Rs 178.
Most other IT stocks are trading in the negative now, in tune with the broader market. Aptech has slipped 1.3% to Rs 186. MphasiS is down 1.5% at Rs 759.
NIIT and Oracle Financial Services Software have dropped 1% each to Rs 64 and Rs 2,255, respectively.
Indian IT companies have started winning deals once again, after almost a year of the Satyam fiasco. Though the deals were done at lower prices than earlier, analysts believe the prices are stabilizing.
HCL Technologies announced three large deals of over $100 million in the first half of this year. Wipro also managed to bag a five-year data centre and application management contract from BJ Wholesale Club. Last month, TCS, Infosys and Wipro each won a part of the $1.5-billion outsourcing contract from British oil and gas firm BP.
Moreover, foreign institutional investors have increased their holdings in most large-cap and mid-cap IT stocks like Infosys, TCS and Wipro. Their stake in mid-cap technology stocks such as MphasiS, Patni Computer Services, NIIT Technologies, Aptech and Hexaware Technologies has also risen between 2-4% for the quarter ended September 30.