Mumbai: Tech stocks saw a major rally on Monday.
Stocks of Tata Consultancy, Infosys, Wipro, Mastek and other leading names reported a gain during the trade.
The BSE Information Technology index made a 4.06 percent intra-day gain, the highest after BSE Metal (up by 2.5 percent) and BSE Teck (3 percent).
Shares of TCS with a gain of 7.30 percent made the highest gain. TCS saw volume of 4.73 lakh shares to settle at Rs 2,706.85 and even recorded a 52 wk high of Rs 2,727.
TCS had also announced that its Board of Directors will consider share buyback in its meeting on October 7. This also was a reason for the rally.
Stock price of Wipro surged 5.67 per cent or Rs 17.75 to Rs 330.75 per share.
Infosys shares were at Rs 1,042.40, higher by Rs 24.70 or 2.43 per cent from the previous close.
Shares of the HCL Technologies were at Rs 824.15, higher by Rs 11.40 or 1.40 per cent.
The enthusiasm among tech stocks arose from a simple reason - a US Judge blocking H1-b visa ban last week.
In June, US President Donald Trump issued an executive order temporarily barring the issue of new H-1Bs and other foreign visas including H-2B, J and L visas, until end of the year.
In an order served last week, a federal judge observed that by enforcing such a ban, Trump exceeded his constitutional authority and as such the new policy does not serve any public interest.
Had Trump's directive been passed, it could have been a major blow to the Indian IT industry.