US funds accumulate domestic IT stocks

Some US-based ‘long-only’ funds have been accumulating shares of top software exporters of late. Brokers said these investors, who are pick-up stocks and sectors with a long-term view, are betting on a global recovery, which is expected to boost IT spends of companies worldwide.

So far, these funds have restricted purchases to Infosys, TCS and Wipro, according to brokers. But they are keeping an eye on the dollar-rupee movement. A broker said the rupee’s level of 42 against the dollar (currently at around 47) would be taken as a trigger point by these funds to exit these stocks.