Stocks of domestic information technology companies are likely to gain over the next five sessions on improved investor sentiment after the European Central Bank announced a much-awaited bond-buying programme and noting a rise in the US employment numbers. Shares of most technology companies ended up this week as well tracking the optimism in global markets.
On Thursday, the ECB said it would purchase bonds of debt-ridden Eurozone countries in unlimited quantities from the open market to lower their borrowing costs. However, the ECB did not detail a timeframe for such a move. Also, data releases showed a fall in US jobless claims for the week ended Saturday, and a rise in employment during August.
Stocks have done well over the past few weeks after falling on Infosys' results. Tata Consultancy Services and HCL Technologies have restored some confidence within the sector. Also, dismissal of the harassment case against Infosys in US boosted sentiments.
Moreover, expectations of liquidity conditions easing in developed markets have supported stocks.
