Stocks of software exporting firms were back in the limelight across the board on Wednesday after the government imposed restrictions on the external commercial borrowings to cap the rupee’s surge. 

The BSE IT index was the third best performer among segment indices with a hefty rise of 189.96 points, or 4.11 per cent at 4,808.43, contributing key support to the Sensex, which ended 375.21 points higher at 15,307.98.

Sizable gains

All the twelve constituents of the IT sector index ended in positive zone with sizeable gains. Market observers said measures, announced by the government on Tuesday, to tighten the norms for companies to borrow from overseas to check the rise in rupee value against other currencies resulted in increased trading in IT stocks.

As per the changes, a company raising $ 20 million of External Commercial Borrowings (ECBs) would have to seek prior permission of RBI to bring such funds into India. An about nine-per cent rise in the value of rupee against the US dollar this year has hit the profit margin of software exporters of the country.

Heavy buying

Over 50 per cent software export revenue comes from the US. IT bell-weather, Infosys Technologies stocks witnessed brisk buying activity throughout the session and climbed Rs 88.85 at Rs 1,967.60, while TCS gathered Rs 45.80 at Rs 1,153.70.

Wipro gained Rs 16.55 at Rs 475.85 and Satyam Computers was up by Rs 16.30 at Rs 479.30. Other gainers include HCL Technologies by Rs.18.95 at Rs.317, Mphasis by Rs 18.60 at Rs 303.95, Tech Mahindra by Rs 42.25 at Rs 1,282.55, Financial Technologies by Rs 13.20 at Rs 2,452 and I-Flex by Rs 7.65 at Rs 2,2129.50.