Surge in ADR props up Infosys Technologies

DALAL STREET SPIKES

Technology major Infosys Technologies gained on strong buying support on Monday following the surge in its American depositary receipts (ADRs).

The stock was the biggest gainer among the 30 Sensex stocks, which rescued the Sensex from falling further.

The stock ended 2.34 per cent higher to close at Rs 1,819.35, after hitting an intra-day high of Rs 1,833. The counter witnessed an impressive volume of more than 7.2 lakh shares on the BSE on Monday.

The Infosys ADR had climbed 3.5 per cent to $65.82 on Friday to hit a 52-week high on the global recovery in the equity market. Dealing room sources said there was buying interest at the Infosys counter among foreign institutional investors since morning.

"In a scenario where crude oil prices are hitting new highs every day, the technology sector is considered to be a safe bet as this segment is isolated and till the rupee starts appreciating, the money is expected to chase quality IT stocks," said a senior equity analyst with a leading broking firm.