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IT stocks gain on value buying after steep falls

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Reuters
Last Updated : Mar 20 2014 | 2:09 PM IST

Reuters Market Eye - Software service providers gain on value buying after a recent slump. Tata Consultancy Services gains 3.2 percent, while Infosys is up 2.1 percent and Wipro gains 2.2 percent.

Technical indicators also show the falls may be overdone. The 14-day relative strength index for the NSE IT sub-index dipped below 30 on Wednesday for the first time since April 2013.

The sub-index is also trading below its 20-, 50-, and 100-day moving averages as well as at the lower of its Bollinger band.

IT outsourcers have largely missed out on the record with the NSE IT sub-index down 11.4 percent so far in March compared with a 3.94 percent gain in the NSE. (https://bsmedia.business-standard.comlink.reuters.com/vad77v)

Profit-taking after a strong rally last year, worries about a recovering rupee and caution about revenue in the current quarter have pressured IT shares.

(Reporting by Abhishek Vishnoi)

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First Published: Mar 20 2014 | 1:57 PM IST

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