IT stocks today rose by as much as 3.4 per cent following positive economic data from the US, their major market.
Shares of Infosys gained 3.41 per cent, while TCS rose by 2.45 per cent and Wipro was up 3 per cent on the BSE.
Among others, Hexaware Tech climbed 2.01 per cent, Tech Mahindra (1.37 per cent) and HCL Tech (0.86 per cent).
Led by gains in these stocks, the BSE IT index ended 2.5 per cent higher at 10,395.30.
Market analysts said that IT stocks rose on bullish US manufacturing and construction data.
"IT and Technology stocks rose after positive economic data from the US," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
US manufacturing activity hit a nearly 3-1/2 year high last month and construction spending rebounded strongly in July.
IT companies like TCS, Infosys, Wipro and HCL Tech earn a major chunk of their revenues in dollar from their US clients.
Meanwhile, in the broader market the benchmark Sensex settled the day with a gain of 120.55 points at 27,139.94.