Mumbai: IT stocks on Wednesday rose by as much as 3.4 percent following positive economic data from the US, their major market.
Shares of Infosys gained 3.41 percent, while TCS rose by 2.45 percent and Wipro was up 3 percent on the BSE.
Among others, Hexaware Tech climbed 2.01 percent, Tech Mahindra (1.37 percent) and HCL Tech (0.86 percent).
Led by gains in these stocks, the BSE IT index ended 2.5 percent higher at 10,395.30.
Market analysts said that IT stocks rose on bullish US manufacturing and construction data.
"IT and Technology stocks rose after positive economic data from the US," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
US manufacturing activity hit a nearly 3-1/2 year high last month and construction spending rebounded strongly in July.
IT companies like TCS, Infosys, Wipro and HCL Tech earn a major chunk of their revenues in dollar from their US clients.
Meanwhile, in the broader market the benchmark Sensex settled the day with a gain of 120.55 points at 27,139.94.