IT stocks surge on rupee's weakness
A weak rupee is considered beneficial for IT firms, which export their products to markets across the world, thereby earning higher revenues in rupee terms.
By ET Online |
NEW DELHI: Shares of information technology firms surged on Monday after weakness in rupee buoyed investor appetite for these stocks.
A weak rupee is considered beneficial for IT firms, which export their products to markets across the world, thereby earning higher revenues in rupee terms.
The BSE IT index, a gauge of information technology and related firms on the BSE, ended with gains of 2 per cent after the rupee crashed 47 paise against the dollar. The index has slipped 0.34 per cent so far this year .
Shares of HCL Infosystems closed higher by 4.51 per cent while those of Sonata Softwares, HCL Technologies and Tech Mahindra gained between 2 per cent and4 per cent. Among other prominent gainers were Infosys (up 2.57 per cent), TCS (up 2 per cent) and NIIT Technologies (down 1.2 per cent).
A weak rupee is considered beneficial for IT firms, which export their products to markets across the world, thereby earning higher revenues in rupee terms.
The BSE IT index, a gauge of information technology and related firms on the BSE, ended with gains of 2 per cent after the rupee crashed 47 paise against the dollar. The index has slipped 0.34 per cent so far this year .
Shares of HCL Infosystems closed higher by 4.51 per cent while those of Sonata Softwares, HCL Technologies and Tech Mahindra gained between 2 per cent and4 per cent. Among other prominent gainers were Infosys (up 2.57 per cent), TCS (up 2 per cent) and NIIT Technologies (down 1.2 per cent).
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