IT shares rise on weak rupee

Eight IT shares rose by 0.93% to 3.77% at 12:08 IST on BSE as Indian rupee declined against the dollar.

Tech Mahindra (up 3.77%), CMC (up 3.38%), TCS (up 2.41%), Hexaware Technologies (up 1.78%), MindTree (up 1.77%), Infosys (up 1.45%), HCL Technologies (up 1.37%) and Wipro (up 0.93%), edged higher.

Oracle Financial Services Software (down 0.62%), MphasiS (down 0.99%) and Persistent Systems (down 1.12%), edged lower.

The BSE IT index was up 1.70% at 11,235.29. It outperformed the Sensex, which was down 0.09% at 25,673.88.

The BSE IT index had outperformed the market over the past one month till 1 September 2015, falling 0.23% compared with 8.60% fall in the Sensex. The index had also outperformed the market in past one quarter, rising 1.28% as against Sensex's 7.73% decline.

A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.25, compared with closing of 66.215 during the previous trading session.

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