IT stocks gain up to 4% over weak rupee, improved US jobs data
Mumbai: Led by HCL Tech and TCS, IT stocks Thursday posted gains of up to 4 percent on weakness in rupee and signs of improvement in the US economy.
On the BSE, HCL Tech jumped 4.10 percent to Rs 798.85, followed by Hexaware Tech which gained 3.94 percent to Rs 91. Tech Mahindra was up 3.08 percent to Rs 1,030.45.
Among bluechip IT pack, TCS gained 3.26 percent to Rs 1,534.15, while Infosys climbed 2.29 percent to Rs 2,460.50 and Wipro rose 2.13 percent to Rs 350.75, on the BSE.
Led by the gains in these stocks, the BSE IT index climbed 2.73 percent to 6,244.37 and was the top gainer among the 13 sectoral indices.
Better-than-estimated US jobs data added to signs of recovery in the world's largest economy also boosted the earnings outlook for exporters, brokers said.
Weakness in the rupee against the US dollar is broadly seen as positive for export-focussed sectors like IT.
Market experts 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 dollars from their US clients.
The rupee, however, broke its three-day of losing trend and recovered moderately by 8 paise to close at 60.13 against the US currency.