IT stocks gain as rupee falls to record low

Led by Infosys, IT stocks logged smart gains on the bourses today, as a plunge in rupee value to a record level boosted the prospects for an increase in their dollar earnings from the overseas markets.

The rupee today hit a record low level of Rs 52.73 versus the US currency -- a move broadly seen as a positive for export-focussed sectors like the Indian IT space.

Shares of IT giant Infosys settled 2.33% higher at Rs 2,723.15 on the BSE and the stock the biggest contributor to the 119.32-points gain in the benchmark Sensex.

Country's biggest software exporter TCS gained 1.84% to close at Rs 1,084.55.

Among other IT stocks, Wipro climbed 1.70%, HCL Tech settled up 1.14% and Mphasis rose by 1.56%.

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

IT companies like TCS, Infosys, Wipro and HCL Tech earn a major chunk of their revenues in dollar from their US clients.

The BSE IT index also ended 1.95% higher at 5,585.40 points.