US interest rate cut hope invigorates IT stocks

Six IT stocks rose between 3.62% to 7.59% at 12:36 IST on BSE after US Federal Reserve signaled its intention to keep cutting rates and Hewlett-Packard Corporation gave a strong profit outlook.

Meanwhile, BSE Sensex was up 76.16 points or 0.43% to 17,677.88, on positive cues from the global markets.

Satyam Computer Services (up 7.59% to Rs 454.55), Mphasis (up 6.56% to Rs 247), Patni Computer Systems (up 5.86% to Rs 267.50), Tata Consultancy Services (up 4.85% to Rs 927.50), Wipro (up 3.82% to Rs 427) and Infosys (up 3.62% to Rs 1,625) edged higher.

Hewlett-Packard Corporation reported quarterly profit that beat Wall Street's estimates. Investors in US markets bet strong overseas sales will sustain profits in the computer industry.

Meanwhile, minutes from the Federal Reserve's latest policy setting meeting revived optimism that the central bank will stay aggressive to keep the economy from falling into recession.

Exports to United States, contribute to more than half of the revenue of the Indian IT sector. US economic outlook thus holds key for Indian IT firms.