IT stocks gain up to 5.3 per cent on weak rupee

Information technology (IT) stocks on Tuesday gained as much as 5.3 per cent, tracking weakness in the rupee against the US dollar.

Weakness in the Indian currency against the US dollar is broadly seen as positive for export-focussed sectors like IT.

Shares of Wipro surged 5.30 per cent to Rs 474.85 and was the top gainer among the bluechip 30-Sensex stocks. HCL Tech's scrip climbed 4.15 per cent while Tech Mahindra rose by 2.57 per cent, TCS by 2.22 per cent, Mindtree by 1.69 per cent and Infosys by 1.02 per cent.

Following gains in these stocks, the BSE IT index ended the day at 7,822.59, up 2.15 per cent and was the top gainer among the 13 sectoral indices.

In the broader market, the BSE Sensex ended the day at 19,804.03, up 61.56 points. Wipro, TCS and Infosys together added 69.5 points to the overall Sensex gain.

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.

Meanwhile, the policy meeting of the FOMC starting Tuesday may decide on cutbacks in its bond-purchase programme.

With inputs from PTI