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Wednesday, 26 March 2008

Infosys Shares Gain on Optimism Rupee's Appreciation May Slow

Infosys Technologies Ltd. rose the most in 21 months in Mumbai trading, leading gains among Indian computer services provider, amid optimism that the currency will slow its appreciation.

Infosys, India's second-largest provider of computer services, climbed 9.6 percent, its biggest gain since June 15, 2006, to 1,492.55 rupees at the close of trading on the Bombay Stock Exchange today. Larger rival Tata Consultancy Services Ltd. gained 6.4 percent. Wipro Ltd., ranked No. 3, rose 9 percent, its biggest climb since May 18, 2004.

The Indian currency has fallen 1.7 percent this year, after making its biggest gain in more than three decades in 2007. A stronger rupee reduces the value of the exporters' earnings from the U.S., the world's largest market for computer services.

``We don't expect the rupee to appreciate that sharply now,'' Mihir Vora, senior vice president at HSBC Asset Management (India) Pvt., said by telephone from Mumbai. HSBC manages $1 billion in equities in India. ``I think one of the concerns, which was the currency, has kind of been alleviated,''

Vora said technology stocks account for 5 percent to 10 percent of the portfolios that he oversees, compared with a ``negligible'' proportion in the previous quarter.

Bangalore-based Infosys and its local rivals manage computer networks and call centers for overseas clients including General Electric Co. and ABN Amro Holding NV.

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