<div id="readability-page-1"><div>The shares of Indian IT companies jumped in trade on December 2, pushing the Nifty IT index into the green for the fourth consecutive session. Rising hopes for further rate cuts by the Federal Reserve and soaring Infosys ADR were among the five key factors behind the sharp rise.The Nifty IT index gained 1.35 percent to 39,214.90, as seen at 10.10 am. The index has now gained more than 1,150 points (over 3 percent) during its four-session gaining streak so far.Infosys ADR surge:Infosys Ltd’s American Depository Receipt (ADR) surged sharply to fresh record highs on Friday, with the company clarifying that it is not aware of any material event which led to the sudden spike. The ADRs hit a 52-week high on aggressive short-covering, opening nearly 40 percent higher before paring gains.Traders told Moneycontrol that the sharp move was driven by a short squeeze, after a major lender recalled a large chunk of stock lent out in the market. The sudden recall forced traders with short positions to rush into the open market to cover their exposure, bidding up prices sharply in a thinly traded counter.Soft US inflation data:US consumer prices rose less than expected in the year ending in November. US consumer prices rose 2.7 percent year-on-year in November, slowing from a 3 percent increase in the 12 months through September.The moderation in the in the US Consumer Price Index, reported by the Labor Department's Bureau of Labor Statistics on Thursday, has reignited hopes for more rate cuts by the US Federal Reserve in the near future.Higher hopes for further Fed rate cuts:Along with the softer US inflation data, positive commentary by the American central bank’s management also boosted hopes for more rate cuts. Federal Reserve Governor Christopher Waller on Wednesday said that the American central bank still has room to cut interest rates amid rising job market weakness.&#34;I still think we're probably, you know, maybe we're 50 to 100 basis points off of neutral,&#34; which means the Fed still has room to cut interest rates if it needs to, Waller said at the Yale School of Management CEO Summit in New York.A rate cut in the US will likely increase the discretionary spending capacity, which will likely help the IT companies which derive a major portion of their revenue from the American market.Strong Accenture results:Accenture released better-than-expected first-quarter results on Thursday, driven by artificial intelligence (AI) solutions that help clients integrate the technology to enhance productivity.The IT consulting firm reported revenue of $18.74 billion, compared with analysts' average estimate of $18.52 billion, according to data compiled by LSEG. New bookings during the quarter increased 12 percent to $20.9 billion, with consulting bookings of $9.88 billion and managed services bookings of $11.06 billion.The US-based IT giant's management, in a post-earnings investor call Thursday, highlighted that the pace of overall and discretionary spending was at the same level as the previous year.Value buying:The rise in the IT stocks may have also been driven by value buying after months of downturn. These stocks have remained under pressure this year overall due to multiple factors, including Trump's H1-B visa changes, tariff jitters and more.After a strong phase of correction, investors may have begun to look at the space due to better valuations.Top IT gainers today:Wipro and Infosys shares were the top gainers on the index, jumping more than 2 percent each. Persistent Systems shares gained nearly 2 percent each.HCL Technologies, Coforge and Tech Mahindra shares rose more than 1 percent each, while Tata Consultancy Services (TCS) shares gained around 1 percent. LTI Mindtree shares were trading in the green with marginal gains, while Mphasis shares were down 1 percent, bucking the trend in the sector.Follow all LIVE updates from the stock markets here.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</div></div>

INFY

Indian IT shares, including Infosys and Wipro, rose for the fourth consecutive day due to several factors: a surge in Infosys ADR, soft US inflation data, hopes for further Fed rate cuts, strong Accenture results, and value buying. The Nifty IT index gained 1.35%, with top gainers being Wipro and Infosys. The rise is attributed to short-covering, positive US economic indicators, and improved valuations after a downturn.

Infosys, Wipro, other IT shares rise for 4th day due to ADR surge, four other reasons