IT sector stocks were in huge demand on Friday on the domestic equity bourses, propelling the BSE IT index to outperform the benchmark Sensex by gaining 157.42 points or 3.69%. BSE IT index closed the day at 4,424.57 points with a weekly gain of 5.41% against the Sensex which gained 3.11%. In the past couple of months, IT stocks were battered heavily on the local bourses following the sharp appreciation of rupee against the dollar. Market experts say that the rupee is expected to move in a range-bound manner in the near term following the measures taken by the Government and the Reserve Bank of India (RBI) to curb the excessive inflow of funds. As a result, investors are now slowly turning towards IT counters where valuations are looking quite attractive at a time when the market is nearing its all-time high.
Anil Advani, head of research, SBICAP Securities, said, ?As compared to the last quarter, valuations of IT companies are quoting lower than the Sensex. Also, the rupee appreciation has not been as severe as it was in the last quarter and the market is expecting that the weakening of dollar would stabilise at least in the short term.?
Majors drivers of the IT rally on Friday included Infosys that surged higher by Rs 83.25 or 5.09% to close the day at Rs 1,718.15. TCS rose by Rs 27.05 or 2.62% at Rs 1,061.25 while Wipro closed the day at Rs 502.55 gaining Rs 9.15.