Infosys, Wipro ADRs surge up to 3% as Wall Street major indices discount Israel-Iran tensions
As major indices on the Wall Street surged on Monday, the American Depository Receipts (ADRs) of India's frontline IT companies Infosys and Wipro rallied up to 3%.
ADVERTISEMENT While the Infosys ADRs gained 2.2% to hit the day's high of $18.82, Wipro ADRs were up at $3.05, rising by 3%.
The mood remained upbeat with Dow 30 trading at 42,602.20, gaining 404.44 points or 0.96% around 9 pm India time, the S&P 500 was higher by 64.85 points or 1.08% at 6,041.82. The Nasdaq Composite was at 19,706.80, rising by 300.02 points or 1.55%.
US stocks rose in early trade as calm returned on the Street after a volatile end to last week. The benchmark crude oil prices fell sharply, calming nerves on global Street.The US WTI futures were trading at $70.34 per bbl, falling by $2.64 or 3.62% while Brent Oil contracts on the COMEX were trading around $71.63 per bbl, correcting by $2.60 or 3.50%.Earlier today, the domestic IT pack led bulls' march helping India's heartbeat indices end their two sessions losing streak. While the BSE Sensex closed the session at 81,796.15, gaining by 677.55 points or 0.84% while the broader Nifty finished at 24,946.50, rising by 227.90 points or 0.92%.
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The Nifty IT index closed with gains of 1.6% with all 10 stocks closing in the green. Tier-2 stock Mphasis was the top gainer at 2.3% and was followed by Persistent Systems, Oracle Financial Services Software (OFSS) and Tech Mahindra which were up 2%, each.
Others including Coforge, HCL Technologies, Tata Consultancy Services (TCS), Infosys, Wipro and LTI Mindtree gained between 1.9% and 0.5%.
ADVERTISEMENT This was notwithstanding growing escalations between Israel and Iran. Despite the continued hostilities, markets are cautiously optimistic that the conflict might not spill over further, allowing oil prices to stabilise.Israel launched strikes on Iranian nuclear and military sites late last week, prompting a surge of over 7% in oil prices on Friday. Iran, a key oil producer under Western sanctions, responded with a new wave of missile attacks on Israel early Monday.
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