IT stocks in demand

Nine IT stocks rose by 0.28% to 1.8% at 10:22 IST on BSE after the US Federal Reserve gave a positive assessment of the world's largest economy.

Infosys (up 1.8%), Oracle Financial Services Software (up 1.22%), Wipro (up 0.88%), TCS (up 0.74%), CMC (up 0.57%), Tech Mahindra (up 0.35%), Hexaware Technologies (up 0.34%), HCL Technologies (up 0.32%) and MphasiS (up 0.28%), edged higher.

The S&P BSE IT index was up 1.06% at 9,071.10. It outperformed the BSE Sensex, which was up 0.21% at 25,298.18.

The stock had underperformed the market over the past one month till 18 June 2014, rising 3.86% compared with 4.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 1.23% as against Sensex's 15.64% rise.

US Federal Reserve Chairwoman Janet Yellen gave a relatively upbeat assessment of the economy. Speaking after the central bank's latest policy meeting, Ms. Yellen said the US economy is showing signs of strength after a dismal first quarter. The Fed announced a $10 billion reduction in the central bank's bond-buying program, as widely expected. And while officials trimmed long-term forecasts for economic growth, their projections for short-term interest rates in 2015 and 2016 rose slightly.

US is the biggest outsourcing market for the Indian IT firms.

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