IT stocks gain on positive US economic data

Seven IT stocks rose by between 0.11% to 2.1% at 11:21 IST on BSE on positive economic data in US, the biggest outsourcing market for the Indian IT firms.

The S&P BSE IT index was up 1.43% at 10,646.33. It outperformed the Sensex, which was up 1.26% at 27,690.71

HCL Technologies (up 2.1%), Oracle Financial Services Software (up 1.64%), Tech Mahindra (up 1.45%), Hexaware Technologies (up 1.17%), TCS (up 0.92%) and Wipro (up 0.11%) gained.

Infosys rose 1.6% to Rs 4,009.20 after hitting record high of Rs 4,019.95 in intraday trade.

The S&P BSE IT index had underperformed the market over the past one month till 30 October 2014, falling 1.79% compared with 2.69% rise in the Sensex. The index, however, outperformed the market in past one quarter, surging 7.09% as against Sensex's 4.83% rise.

A report on Thursday, 30 October 2014 showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.

The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.

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