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IT stocks advance on positive US economic data

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Capital Market
Last Updated : Aug 30 2013 | 12:25 PM IST

Six IT stocks rose by 0.19% to 3.02% at 11:18 IST on BSE on positive economic data in the US, the biggest outsourcing market for the Indian IT firms.

The BSE IT index was up 1.59% at 8,031.13. It outperformed the Sensex, which was up 0.92% at 18,571.23.

The BSE IT index outperformed the market over the past one month till 29 August 2013, rising 8.34% compared with the Sensex's 6.08% fall. The index had also outperformed the market in past one quarter, advancing 31.26% as against Sensex's 8.67% fall.

Wipro rose 3% to Rs 490.15 after hitting a 52-week high of Rs 494 in intraday trade today, 30 August 2013. Wipro on Thursday, 29 August 2013, announced the launch of a range of information technology (IT) products for the aviation industry.

Wipro enters the CNX Nifty index in place of Reliance Infrastructure with effect from 27 September 2013 as per an announcement by the National Stock Exchange (NSE) on 27 August 2013.

TCS rose 2.52% to Rs 1,995.20 after hitting a record high of Rs 2,002.95 in intraday trade today, 30 August 2013.

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HCL Technologies gained 2.04% to Rs 1,039.10 after hitting a record high of Rs 1,044 in intraday trade today, 30 August 2013.

Tech Mahindra rose 1.51% to Rs 1,387.95 after hitting a 52-week high of Rs 1,428 in intraday trade today, 30 August 2013.

Infosys rose 0.19% to Rs 3,115.

MphasiS gained 3.02% after consolidated net profit rose 9.1% to Rs 193 crore on 9.6% growth in revenue to Rs 1540 crore in Q3 July 2013 over Q2 April 2013. The Q3 result was announced after market hours on Thursday, 29 August 2013.

MphasiS reported an impressive bottom line growth during the quarter despite a 160 basis points increase in effective tax rates to 26.7%. Operating margins for the quarter expanded 110 bps to 15.8% despite the impact of wage hikes that were administered during the quarter. Cash and cash equivalents increased by Rs 348 crore during the quarter to reach Rs 2688 crore.

MphasiS said that the share of Direct business grew from 54% to 59%, further mitigating risk of client concentration.

Commenting on the company's Q3 performance, Ganesh Ayyar, Chief Executive Officer, MphasiS said: "Our Direct business growth is a reflection of our strategy in action. Our investment in Data, Analytics and Mobility is experiencing growing demand."

During the quarter, the company added 16 clients with 10 in the Direct channel.

IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. Gross domestic product rose at a 2.5% annualized rate, up from an initial estimate of 1.7%, Commerce Department figures showed Thursday in Washington. Jobless claims in the week ended August 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said.

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First Published: Aug 30 2013 | 11:26 AM IST

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