IT stocks continue upward move

IT stocks continued their upward sojourn on Thursday from Wednesday's upbeat run after global markets set a strong precedent.

A host of stocks in the sector gained in early trades . Software bellwether Infosys Technologies (up 1.4% to Rs 4,187), HCL Technologies (up 2.1% to Rs 162.50) and NIIT (up 2% to Rs 103), were the frontrunners.

Second line IT stocks were also caught in the onward current - SSI (up 4.5% to Rs 61.40), Aztec Software (up 3.7% to Rs 16.45), Infotech Enterprises (up 2.6% to Rs 104.50), Mascot Systems (up 2.5% to Rs 107.40), Hexaware Technologies (up 2.5% to Rs 116), Hughes Software (up 2.9% to Rs 200), Sonata Software (up 2.3% to Rs 13.20), Geometric Software (up 2% to Rs 469.60), VisualSoft Technologies (up 1.6% to Rs 153.60) and i-flex Solutions (up 1.5% to Rs 933.50).

The optimism in this sector in particular has been refueled by hopes that the US-Iraq war will head for an early conclusion what with sustained exploits by coalition forces in Iraq. Perhaps, the rally in Asian markets early today has proved infectious. Benchmark Asian indices were spurred on today on news that US troops advanced to within 20 miles of Baghdad. US forces were moving on two fronts towards Baghdad and smashed two of President Saddam Hussein's elite Republican Guard divisions that blocked their way, reports said.

Global equity market sentiment today is clearly being determined by developments on the war front. US markets surged on Wednesday on hopes that a resolution to the conflict in Iraq may materialise earlier than expected . Technology stocks led the market's charge, driving the Nasdaq composite index up more than 3% and pushed the blue-chip Dow average higher by over 2%.

The Dow Jones industrial average gained 213 points or 2.63% to 8,283, after rising over 3% shortly after noon, and the broader Standard & Poor's 500 Index gained 22 points, or 2.53% to 880. The technology-laced Nasdaq Composite Index jumped 45 points, or 3.34% at 1,393. Wall Street shrugged off the latest economic data, which showed orders for US manufactured goods slumped by a bigger-than-expected 1.5% in February. The government report indicated companies were more cautious ahead of the Iraq war.

The BSE IT sector, which has been on quite a roller coaster ride of late due to volatile movements in IT stocks, surged 34.77 points, or 2.63% on Wednesday, to 1,355.04.

While stocks in Asia rose on Thursday, oil prices eased. NYMEX May crude oil futures fell 1.8% to $28.05 per barrel after falling about 5% on Wednesday.

Market men are now awaiting Infosys Technologies' Q4 results (to be released on 10 April 2003). But it is the future guidance of the company which is being awaited even more eagerly.