IT shares firms up after rupee extends fall
Seven IT shares rose by 0.19% to 2.80% at 10:24 IST on BSE after the rupee hit a record low below 65 against the dollar in early trade today, 22 August 2013.
Hexaware Technologies (up 2.80%), Infosys (up 1.34%), Wipro (up 1.04%), MphasiS (up 0.59%), Tech Mahindra (up 0.28%), Oracle Financial Services Software (up 0.27%) and HCL Technologies (up 0.19%), edged higher. However, TCS was down 0.58%.
The S&P BSE IT index was up 0.53% at 7,295.88. It outperformed the S&P BSE Sensex, which was up 0.03% at 17,911.10.
The S&P BSE IT index had outperformed the market over the past one month till 21 August 2013, rising 2.26% compared with the Sensex's 11.14% decline. The index had also outperformed the market in past one quarter, rising 20.35% as against Sensex's 10.97% fall.
The rupee hit a record low below 65 against the dollar in early trade today, 22 August 2013, after minutes of the Federal Reserve's last meeting signaled the US central bank was on course to pare bond purchases this year.
The rupee was hovering at 64.87, sharply lower than its close of 64.11/12 on Wednesday, 20 August 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
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