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IT shares extend gains on improving US, European economies

In past one week, IT index has outperformed the market by gaining 5.3% against 0.40% gain in benchmark index.

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SI Reporter Mumbai
Last Updated : Dec 20 2013 | 11:22 AM IST
Shares of information technology (IT) companies mainly mid and small-sized are in demand with many of them trading at their 52-week highs on the Bombay Stock Exchange (BSE).

Tech Mahindra, MphasiS, Mastek, Mindtree, Hexaware Technologies, NIIT, Aptech, Info Edge India, Sonata Software and Sasken Communication Technologies are trading higher by up to 20% on the BSE. Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro from the large cap too, up 1-2%.

The BSE IT index quoting at new high was up 1.2% compared to 0.44% rise in S&P BSE Sensex at 1040 hours. In past one week, IT index has outperformed the market by gaining 5.3% against 0.40% gain in benchmark index.

Most large and mid-size IT players have hinted at a marginal uptick in spending by clients and a rise in discretionary spending during 2014 on better macro-economic environment in United States and European Union.

Among the individual stocks, Mastek has surged as much as 20% to Rs 162 on back of heavy volumes. A combined 3.15 million shares have already changed hands on the counter so far against an average sub one million shares that were traded daily in past two weeks on the NSE and BSE.

On Thursday, India Investment Partners A/C ICG Q sold 0.52% stake in Mastek for Rs 1.75 crore. It sold 0.13 million shares at a price of Rs 134.54 at the NSE. The buyer's name was, however, not disclosed in the bulk deal data available with the exchange.

Sonata Software has rallied 9% to Rs 40, followed by NIIT (7% at Rs 27), Aptech and Info Edge India are up 6% each at Rs 80 and Rs 477 respectively, while Sasken Communication Technologies up 5.4% at Rs 189.

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First Published: Dec 20 2013 | 11:15 AM IST

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