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New Delhi: Software stocks drove Indian shares up 2.19 per cent on Tuesday to their highest close in two weeks, with bellwether Infosys Technologies rising 6.2 per cent on a confident medium-term outlook and a dividend change.
Infosys rose to a two-week closing high of Rs1,510.80 after it forecast per-share earnings for 2008-09 at Rs92.32 to Rs93.92, although profit for the March quarter grew a lower-than-expected 9.6 per cent.
"People have found some comfort in software firms after Infosys results, keeping in view worries over a US slowdown," said Dipak Acharya, a fund manager with BoB Mutual Fund in Mumbai. "If next two three results are okay, we may see the market bouncing towards 16,800 levels."
The 30-share BSE index rose 346.02 points to 16,153.66, with 26 components rising, to its highest close since March 28. The index, which fell as much as 1.5 per cent in morning deals, is still down more than 20 per cent on the year.
"We saw some bottom-fishing last week also. Domestic institutions have extended their support," Acharya said.
Indications
JPMorgan analysts said in a report Infosys' earnings per-share guidance for 2008-09 was slightly ahead of their expectations, and indicated there was still demand for outsourcing.
"Further, Infosys' normal conservative stance should mean that guidance builds in most of the possible negatives," they said, adding that after a bounce, the stock may trade sideways until there was evidence of demand strength or a US recovery.
Lifted by Infosys, top software exporter Tata Consultancy Services rose 7.4 per cent to Rs975.10, its highest close since February 4.
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