Four infotech companies accounted for as much as 45 per cent of the total Rs 45,739 crore increase in the market capitalisation of traded scrips in the last eight trading sessions.
The aggregate market capitalisation of traded scrips on the Bombay Stock Exchange (BSE) increased by 9.78 per cent to stand at Rs 5,13,226.70 crore on January 8, up from Rs 4,67,487.74 crore on December 27, 2001.
The combined market capitalisation of Wipro, Infosys Technologies, Satyam Computer Services and HCL Technologies increased by Rs 20,537 crore during this period.
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Expectations of good third quarter performance were the major trigger for the recent tech rally. Wipro's market capitalisation increased 25.79 per cent (Rs 8,726.89 crore) to Rs 42,559.13 crore, that of Infosys Technologies increased 23.14 per cent (Rs 5,999.06 crore) to Rs 31,922.20 crore, that of Satyam Computer increased 61.87 per cent (Rs 3,950.75 crore) to Rs 10,336.11 crore and that of HCL Technologies increased 25.87 per cent (Rs 1,859.83 crore) to Rs 9,049.56 crore.
Interestingly, these four companies account for over 84 per cent of the IT sector's total market capitalisation. This jumped 27.60 per cent (Rs 24,290.68 crore) to Rs 1,12,311.03 crore in these eight trading days. Thus, the increase in the market capitalisation of IT companies is around 53 per cent of the increase in the aggregate market capitalisation.
Market sources said the expectations of tech companies performing better had been supported by fund buying. The sector has also benefited from speculative buying in secondline stocks. Speculators are building positions at current levels, market sources said.