Software service providers gain on value buying after a recent slump. Tata Consultancy Services gains 3.2 per cent, while Infosys is up 2.1 per cent and Wipro gains 2.2 per cent.
Technical indicators also show the falls may be overdone. The 14-day relative strength index for the NSE IT sub-index dipped below 30 on Wednesday for the first time since April 2013.
The sub-index is also trading below its 20-, 50-, and 100-day moving averages as well as at the lower of its Bollinger band. IT outsourcers have largely missed out on the record with the NSE IT sub-index down 11.4 per cent so far in March compared with a 3.94 per cent gain in the NSE.
Profit-taking after a strong rally last year, worries about a recovering rupee and caution about revenue in the current quarter have pressured IT shares.
