IT index up 2.15%, Infosys surges ahead of Q4 earnings

Led by Infosys Technologies, shares of software companies saw some frenzied buying by funds on the bourses today, lifting the sectoral indice by 2.15%, riding high on expectations of robust fourth quarter numbers.

The 10-share BSE IT index, which had witnessed a persistent fall in the past few sessions, rallied to close at 141.02 points, or 2.15% higher at 6,686.12 on the back of a strong recovery in IT majors like Infosys Technologies, TCS and Wipro.

Meanwhile, the BSE benchmark Sensex ended 434.32 points, or 2.25% higher at 19,696.86 after declining to 19,101.63 points at the outset.

Traders said buying activity in software companies re-emerged in anticipations that IT bellwether, Infosys Technologies, which will begin the Q4 earnings' season on Friday, may post encouraging numbers.

A firm trend in global markets and bargain-buying by speculators after five sessions of losses, as current levels turned attractive, also strengthened the trading sentiment, they said.

Infosys Technologies, which gets nearly 90% of its revenue from exports, climbed 2.05% to Rs 3,306 as market participants enlarged their positions ahead of fourth quarter results.

Stocks of the country's largest software exporter Tata Consultancy Services shot up by 2.57% to Rs 1,208.95, while Wipro ended the day with a rise of 2.94% at Rs 473.45.

Other gainers, included Financial Technologies at Rs 894.10 and Mphasis at Rs 449.75.