IT stocks gain up to 4% on weak rupee
Mumbai: Bucking an overall weak stock market, IT stocks on Monday gained up to 4 percent following weakness in the rupee against the US dollar, a trend broadly seen as positive for export-focussed sectors.
Shares of Hexaware Tech rose by 3.71 percent, while HCL Tech was up 2.98 percent on the BSE.
Among others, Wipro gained 1.50 percent, Infosys (0.70 percent) and Tech Mahindra (0.65 percent).
Led by gains in these stocks, the BSE IT index ended the day at 6,246.22, up 0.32 percent.
Experts said that IT stocks gained on hopes that rupee's weakness will boost dollar revenues of the software firms.
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 dollars from their US clients.
The rupee fell to a record intra-day low of 61.21 on capital outflows and demand from oil importers after crude oil in overseas markets climbed to nine-month high.
In the stock market, the BSE 30-shares Sensex ended the day at 19,324.77, down 171.05 points or 0.88 percent.