Chief excutive officer and Managing director of Tata Consultancy Services (TCS) N. Chandrasekaran
HAVING borne the brunt of the acute selling pressure prevailing in the stock market over the past few trading sessions, IT stocks led by TCS and Infosys made a smart recovery in early trade on Wednesday (August 10) in line with the bullish trend in the broader market.
Shares of Infosys went up by 4.12 per cent to touch an early high of Rs 2,475.10 (£34) on the BSE. In the previous session, the stock had fallen to a fresh one-year low.
India's largest IT exporter TCS's shares also rose by 4.62 per cent to touch an early peak of Rs 1,012 (£14). Similarly, another IT heavyweight, Wipro, saw renewed buying interest from investors and jumped by 3.19 per cent to Rs 358.35 (£5).
A similar trend was seen at the counters of other IT companies, with HCL Tech gaining 4.35 per cent, Patni Computers up 3.03 per cent and Tech Mahindra rising by 2.20 per cent.
Led by the recovery in these stocks, the BSE IT index was trading higher by 3.25 per cent at 5,205.31 in the morning.
The rise in software stocks was in sync with the sentiment in the broader market, with the BSE bell whether Sensex soaring by 325.60 points to 17,183.51 in early trade, snapping a six-session losing streak.
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.
The creditworthiness of the US was downgraded by Standard and Poor's amid the American economy's mounting debt.
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