Technology Stocks Lead Market Rally

New Delhi, Sept 19: | Updated: Sep 20 2003, 05:30am hrs
The massive rebound in equity markets on Friday has been marked by a fresh bout of buying in information technology stocks.

After the sharp fall since the beginning of the last week, technology heavyweights have zoomed 2-3 per cent on a single day on Friday.

With 2.15 per cent gains, the BSE IT index has emerged as the top gainer among all sectoral indices on The Stock Exchange, Mumbai (BSE) as compared with benchmark BSE Sensex gains of 2 per cent on Friday.

Wipro has surged 2.79 per cent to close the week at Rs 1,162.85 and figured at the top, among the IT majors during the day. Infosys and Satyam bounced back 2.19 per cent and 2.08 per cent to close at Rs 4,339 and Rs 240.9, respectively.

Infosys and Wipro together have 60 per cent weightage in the BSE IT index.

Technology stocks had taken a beating on selling pressure from financial institutions in the second week of September. Disappointing financial results of HCL Technologies earlier this week had aided the selling spree.

As a result, HCL Technologies was battered over 29 per cent between September 9-18. Wipro, Digital Equipment and Satyam also shed 16.5 per cent, 12 per cent and 11 per cent, respectively, during the period.

The bounce-back has been, more-or-less, in proportion to the recent decline. HCL Technologies gained 2.76 per cent to close at Rs 165.75, as the downward correction in the stock came to an end after lower-than-expected results.

The other major gainers included Hughes Software (gaining 4.96 per cent to close at Rs 372.65), i-flex Solutions (1.37 per cent, Rs 738.7), Polaris Labs (1.4 per cent, Rs 130.3) and HCL Infosys (2.49 per cent, Rs 207.85).