Bangalore: Following the announcement of second quarter results, investors shown the faith on IT stocks and in result of that BSE IT index shot up by 6.5 percent last week on Sensex. The rally was led by HCL Tech, TCS and Infosys, which rallied 10 percent, eight percent and 6.5 percent respectively. In the week ended November 13, 2009, the IT index traded in the range of 4476 - 4744 points.

The IT industry is ending its worst year ever, with the worldwide IT spending expected to decline 5.2 percent in 2009, according to IT research and advisory firm Gartner. However, this industry would return to growth in 2010 with a total spending of $3.3 trillion, registering a 3.3 percent increase from 2009. Meanwhile, the Asia-Pacific IT spending, which is expected to grow five percent to reach $515.6 billion in 2010, represents a fast V-shaped recovery for IT spending in the region.

It is being expected that the $60-billion IT industry in India will continue to attract overseas business, despite competition from other emerging markets that also offer lower costs.

Among the 13 sector-specific indices of the exchange, Metal sector was top performer last week with a gain of 7.1 percent and was followed by IT and Oil and Gas sector, which recorded 6.5 and 5.3 percent gain respectively. As of October 06, 2009, total market capitalization of the IT index was of Rs. 455,878.34 crore.