IT stocks gain on rupee fall

IT stocks were in limelight Wednesday, gaining nearly 3 percent, as the stronger US currency boosts the sales of software firms in rupee terms.

Mumbai: IT stocks were in limelight Wednesday, gaining nearly 3 percent, as the stronger US currency boosts the sales of software firms in rupee terms.

Shares of Wipro rose by 2.03 percent, while TCS gained 1.82 percent and Infosys climbed 1.32 percent on the BSE.

HCL Tech went up by 2.83 percent and Hexaware Technologies rose by 1.31 percent.

Led by the gains in these stocks, the BSE IT index ended at 10,948.77, up 1.78 percent.

Washing out overnight gains, the rupee today closed 15 paise lower at 63.82 against the US dollar on fresh demand for the greenback from importers amidst a firm American currency in the overseas market.

Fall in rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.

Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.

Big IT companies earn a major chunk of their revenues in dollar from their US clients.

Meanwhile, in the broader market the BSE benchmark Sensex ended at 27,837.21, up 191.68 points.

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close