MUMBAI: Shares of Infosys Technologies Ltd. rose over six per cent in Thursday afternoon deals amid swirling rumours the firm was close to making an announcement, dealers said.
They said the speculation was in connection with the firm announcing a bonus issue, an acquisition or getting some large business order. When contacted, a company spokesman told Reuters Infosys had no comment to make on the market rumours.
Infosys shares were up 543.65 rupees at 8,390 on the Bombay exchange, bouncing off an intra-day low of 7,750. The share had been down for most of the day on the back of the Nasdaq's overnight weakness, where its American Depositary Receipts closed $2/11 lower at 182-1/4.
Dealers said there was some foreign fund buying in the stock. The recovery in Infosys, a heavyweight in the bourses, helped the broader market look up. The 30-share Bombay exchange index rose 0.94 percent or 43.66 points at 4,668.70, off a low of 4,575.03. Infosys has taken government approval to spend upto $2 billion for an acquisition and the market has been keenly awaiting an announcement. In April, Infosys's chairman said no target had been identified.
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