Hong Kong, Singapore funds lap up Indian IT shares: dealers

Investors see growth in biz prospects on rupee depreciation, US recovery

Shares of Indian software companies surged on expectations of improving business prospects due to the rupee's depreciation and recovery in the US market.

Tata Consultancy Services Ltd is up 3.4%, Infosys Ltd gains 1.7%, while Wipro is up 2.9%.

Multiple dealers say overseas funds from Singapore and Hong Kong are lapping up IT shares on every level, citing them as a defensive play on US recovery.

"There is lack of buying choice in the market at the moment and therefore IT stocks are somewhat enjoying a premium over rest of the Indian shares," an institutional salesperson told Reuters.

Also, the weight of the IT sector in the Nifty will rise after Wipro Ltd's inclusion from September 27.