It is boom time again for information technology (IT) stocks. The market capitalisation of IT stocks bounced back to the Rs 1,00,000 crore mark yesterday after the gap of six months. The market cap last totalled over Rs 1 lakh crore on May 15, 2002.
The November rally is largely driven by the sharp increase in the valuations of IT stocks, with their aggregated market cap soaring by Rs 17,000 crore between October 31 and November 28. From Rs 84,966 crore on October 31, the IT sector's market cap soared to Rs 1,01,818 crore on November 28.
Interestingly, the market cap of IT stocks fell to a new recent low of Rs 73,465 crore on August 20, 2002. From the August 20 level, IT stocks have gained Rs 28,454 crore or 38.7 per cent.
Wipro and Infosys Technologies, which accounted for 68.12 per cent of the sector's market cap, were the major gainers. Wipro's market cap soared by Rs 13,928 crore to Rs 39,213 crore and Infosys' by Rs 10,302 crore to Rs 30,245 crore.
Satyam Computer ranked third in the gainers' list with a gain of Rs 2,465 crore, followed by i-Flex Solutions (market cap up by Rs 881 crore), Mphasis BFL (Rs 372 crore), Mastek (Rs 186 crore) and Hughes Software (Rs 152 crore).
