The BSE IT index is trading down 2% in noon deals today as compared to a 0.4% rise in the Sensex after the rupee strengthened to its highest level in more than 18 months.
Among scrips, Mphasis, Patni Computer Systems, TCS and HCL Technologies have tanked in the range of 1% to 2% on the BSE.
Technology heavyweight, Infosys Technologies is the biggest loser among all that is trading lower by 2% at Rs 2,719 levels. The stock has shed more than 3% from Rs 2,806 on March 25.
On Friday, the rupee closed at 45.24 levels and currently trades at 45.01, its strongest level in last 18 months. The rupee hit a high of 45.04 on September 10, 2008.
A firm rupee adversely affects operating profit margin of IT firms as the sector derives a major share of revenue from exports. Almost all Asian units are trading stronger compared to the USD.
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