Software stocks saw their spirits lifted on Monday as benchmark Nasdaq jumped a solid 2.6% on Friday.
In fact, all the top six software pivotals made impressive gains in the morning's section on Monday - Satyam Computer (up 4.36% 223.75), Infosys Technologies (up 2.28 % to Rs 4,250.80), HCL Technologies (up 2.56% to Rs 168), Digital GlobalSoft (up 4.95% to Rs 617.20), i-Flex (up 3.11% to Rs 864.55) and Wipro (up 2.96% to Rs 1,436.15).
The BSE Sensex also was resonant at 3,269.12, up 45.71 points at 11:15 IST.
Techs find a great deal of succor from the performance of US markets, Nasdaq in particular. On Friday, US stocks staged a late rally to make strong gains. The Dow Jones industrial average jumped 158.93 points to 7,908.80 and the Nasdaq composite climbed 32.73 points to 1,310.17, a 2.6% rise.
The reckoning in most global markets now is that, with immense public opinion against war, the US hard-line policy on Iraq may be softened. Though the US is pushing for military action against Iraq, it has not found support with leading nations like France, Germany, China and Russia.
Meanwhile, chief UN weapons inspector Hans Blix's delivery on Friday to the UN Security Council was rather expected and came with no undue alarm bells. Blix cited some violations of UN disarmament resolutions by Baghdad, including the existence of a missile that exceeded its prescribed range, but also said his team of inspectors found no weapons of mass destruction in Iraq.
Dealers say, in the last few sessions, following tension between US and Iraq, tech counters had been battered. Now, with tensions easing on the US-Iraq front, players seem to be keen on bargain hunting. The market, though, is still cautious on war worries. This may cap gains.
The US-Iraq tension had weighed heavily on techs over the past few weeks. In addition, reports that some more federal states in the US were planning to introduce a legislation aimed at blocking government BPO work to India also dampened sentiment for techs. States like Missouri, Maryland, Wisconsin and Connecticut are believed to be contemplating a bill to protect local jobs.
The overall weakness in US markets also took a toll of Indian tech stocks.
The market had been quite worried that, in case of a war, there would be a delay in the flow of orders from the US, which accounts for around 65-70% of Indian software exports . In the last one month between 9 January and 14 February 2003, the BSE IT Index lost 14.64% or 246.37 points to 1,435.78 from 1,682.15.
Second and third rung tech stocks were also trading firm today - DSQ Software (up 12.84% to Rs 12.30), Silverline Technologies (up 10.96% to Rs 12.65), Maars Software (up 8.76% to Rs 11.80), Trigyn Technologies (up 7.81% to Rs 17.95), Hexaware (up 6.73% to Rs 130) Mascot Systems (up 6.42% to Rs 123.50), Rolta (5.11% to Rs 69.95), Kale Consultants (up 7.06% to Rs 34.10) and Melstar Infotech (up 5.88% to Rs 25.20).
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