IT stocks advance on positive economic data from US

Eight IT stocks rose 0.55% to 2.7% at 13:11 IST on BSE after a string of positive economic data from the United States, the biggest outsourcing market for Indian IT firms.

Persistent Systems (up 2.7%), Tech Mahindra (1.9%), HCL Technologies (up 1.74%), MindTree (up 1.73%), Infosys (1.44%), TCS (up 1.05%), Oracle Financial Services Software (up 0.75%), and Wipro (up 0.55%) edged higher.

The S&P BSE IT index was up 1.32% at 9,917.33. It outperformed the Sensex, which was up 0.23% at 26,421.16.

The S&P BSE IT index had outperformed the market over the past one month till 21 August 2014, surging 4.42% compared with Sensex's 2.51% rise. The index had also outperformed the market in past one quarter, jumping 15.79% as against Sensex's 8.49% rise.

A report in the US yesterday showed fewer Americans than forecast applied for unemployment benefits last week. Data yesterday also showed existing home sales rose last month to the most since September, while the Conference Board's gauge of the economic outlook for the next three to six months increased 0.9%. Separately, the Markit Economics preliminary index of US manufacturing in August jumped to the highest level since April 2010.

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