IT shares in demand

Eight IT shares rose by 0.3% to 3.34% at 13:32 IST on BSE after recent strong economic data in the US.

TCS (up 3.34%), Hexaware Technologies (up 2.85%), Tech Mahindra (up 2.57%), Wipro (up 2.38%), HCL Technologies (up 1.28%), Infosys (up 1.17%), MphasiS (up 0.42%) and Oracle Financial Services Software (up 0.3%), edged higher.

The S&P BSE IT index was up 2.30% at 8661.04. It outperformed the Sensex, which was down 0.52% at 21,214.54.

The S&P BSE IT index had underperformed the market over the past one month till 9 December 2013, sliding 1.11% compared with the Sensex's 3.19% rise. The index had also underperformed the market in past one quarter, rising 7.77% as against Sensex's 10.67% rise.

American employers added more jobs than forecast and the jobless rate dropped to the lowest since 2008. The 203,000 increase in payrolls in November followed a revised 200,000 advance in October, Labor Department figures on Friday, 6 December 2013, showed.

The US jobless rate fell to 7%, showing progress in the labor market that will help provide a spark for the US economy.

Another report showed consumer confidence rose more than forecast in December to the highest level in five months, easing concern about household spending heading into the holiday-shopping season. The Thomson Reuters/University of Michigan preliminary December consumer sentiment index rose to 82.5, the strongest since July, from 75.1 in November. US is the biggest outsourcing market for the Indian IT firms.

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