IT stocks drop on dampening US data

Weekly review

IT stocks dropped this week on a dampening set of data from US - its largest exporter for services.

The BSE IT index dropped 2.2% (125 points) - the highest among all sectoral indices in the BSE - to end at 5,514.

The overall U.S. trade deficit spiked to $49.9 billion from $42.0 billion in
May. The June shortfall was much larger than the market forecast for a
$42.5 billion gap. Further, the weekly jobless data showed a rise in number of jobless claims. Technology stock, Cisco, reported a weak quarterly revenuw, adding to worries of the pace of economic recovery.

The BSE benchmark had ended flat at 18,167 - gaining just 23 points in the week.

IT index opened the week at 5,613 and touched a high of 5,689. However, with the dampning data, the index dropped 4% to a low of 5,462. It recovered partially on Friday but remained in red.

Sensex stock - Wipro dropped 4.3% to Rs 415. Infosys shed 3% at Rs 2,780. TCS dipped marginally to Rs 857.

Rolta India tumbled 4% to Rs 170. MphasiS slipped 3.2% to Rs 598. Oracle dropped 2.2% to Rs 2,069.

Tech Mahindra and HCL Tech were marginally down this week.

However, Patni Computers soared 14% to Rs 517. The company declared a special interim dividend of Rs 63 for each share of Rs 2.

Financial Technologies gained 7.3% at Rs 1,320 on a jump in opearting revenues. Operating revenues increased 26% to Rs 73.26 cr.