IT stocks gain on weak rupee, TCS up 1.62%

This is in contrast with a weak stock market, where the BSE benchmark ended at 18,349.25

Bucking the weak trend in broader market, shares of IT companies, including TCS, today gained up to 2.38% on rupee's weakness against the US dollar.

Country's biggest IT company TCS rose 1.62% to close at Rs 1,321.50 on the BSE.

Mphasis settled 2.38% higher, while Wipro was up 0.93%, Infosys (0.61%) and Hexaware Technologies (0.19%).

The BSE IT index closed 0.84% up at 6,023.83 and was the top gainer among the 13 sectoral indices.

This is in contrast with a weak stock market, where the BSE benchmark Sensex ended at 18,349.25, down 146.76 points.

A weak rupee boosts revenue of IT firms in rupee terms as major companies earn most of their revenues from software exports.

"Some of the IT stocks saw recovery in today's session as the rupee fell to almost its week's low levels," Nidhi Sarswat Research Analyst Bonanza Portfolio said.

Brokers said sentiment was otherwise hit with Trinamool Congress announcing that it will withdraw ministers from the UPA government over the issue of FDI in retail, diesel price hike and cap on supply of LPG cylinders.

Rupee was down 28 paise at 54.29 a dollar in late morning trade today.