IT stocks buck sluggish market trend, gain nearly 4 per cent on rupee fall

Defying an overall sluggish market sentiment, IT stocks on Wednesday rose up to 4 per cent amid the rupee sinking to a lifetime low of 68.80 against the US dollar.

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

Shares of IT giant Tata Consultancy Services jumped 3.68 per cent to close the day at Rs 1,904.60 while Wipro was up 3.63 per cent to Rs 471.40 and Infosys went up by 2.03 per cent to Rs 3,120.30 on the Bombay Stock Exchange.

Among others, HCL Technologies climbed 3.12 per cent while Mindtree was up 3.29 per cent, Tech Mahindra (0.73 per cent) and Hexaware Technologies (0.47 per cent).

Following the gains in these stocks, the BSE IT index ended the day 2.68 per cent higher at 7,833.51.

In the stock market, the benchmark Sensex recovered to close 28.07 points higher at 17,996.15 after falling 519 points in morning trade.

With inputs from PTI