Seven IT stocks rose by 0.40% to 5.26% at 13:41 IST on BSE after the Obama administration predicted that US gross domestic product will expand 3.1% in 2014 after rising 1.9% last year.
MphasiS (up 5.26%), TCS (up 0.76%), Hexaware Technologies (up 0.65%), Infosys (up 0.64%), Wipro (up 0.57%), Tech Mahindra (up 0.48%) and Oracle Financial Services Software (up 0.40%), edged higher.
The S&P BSE IT index was up 0.58% at 9,724.41. It outperformed the Sensex, which was up 0.35% at 21,283.01.
The S&P BSE IT index had outperformed the market over the past one month till 4 March 2014, rising 5.61% compared with the Sensex's 4.94% rise. The index had outperformed the market in past one quarter, rising 14.16% as against Sensex's 2.42% rise.
The US economy will grow this year at its fastest pace since 2005, helping reduce the annual average unemployment rate for a fourth straight year even as market borrowing costs rise, the President Barack Obama administration predicted. Gross domestic product will expand 3.1% in 2014 after rising 1.9% last year, the administration said in forecasts accompanying its 2015 budget plan released in Washington. The jobless rate will average 6.9% this year, compared with 7.4% last year, and average 6.4% in 2015, according to estimates based on information as of mid-November. The US is the biggest outsourcing market for the Indian IT firms.
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