IT stocks make smart recovery in early trade

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 today in line with the bullish trend in the broader market.

Shares of Infosys went up by 4.12% to touch an early high of Rs 2,475.10 on the BSE. In the previous session, the stock had fallen to a fresh one-year low.

The country's largest IT exporter TCS's shares also rose by 4.62% to touch an early peak of Rs 1,012.

Similarly, another IT heavyweight, Wipro, saw renewed buying interest from investors and jumped by 3.19% to Rs 358.35.

A similar trend was seen at the counters of other IT companies, with HCL Tech gaining 4.35%, Patni Computer up 3.03% and Tech Mahindra rising by 2.20%.

Led by the recovery in these stocks, the BSE IT index was trading higher by 3.25% 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 bellwether 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.

Global markets have been in bad shape for the past three days, after the creditworthiness of the US was downgraded by Standard and Poor's amid the American economy's mounting debt worries.