IT stocks gain as much as 3% on weaker rupee

IT stocks were in demand, rising as much as 3 per cent today, amid weakness in rupee against the dollar as a stronger US currency boosts the sales of software firms in rupee terms.

Shares of Infosys rose by 2.22 per cent, Wipro was up 1.80 per cent and TCS gained 1.64 per cent on BSE.

HCL Technologies' scrip climbed 2.75 per cent and Tech Mahindra was up 2.10 per cent.

Tracking gains in these stocks, the BSE IT index went up by 2.02 per cent to 11,472.99.

Hit by month-end dollar demand from importers, the rupee today dropped by another 18 paise against the American currency to close at 66.16, extending losses for the fourth straight day.

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

Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.