IT stocks buck weak market trend as rupee hits record low

Seven IT stocks rose by 0.11% to 3.74% at 11:55 IST on BSE as the rupee today, 28 August 2013 hit a fresh record low against the dollar.

Oracle Financial Services Software (up 0.11%), MphasiS (up 2.86%) and Tech Mahindra (up 1.07%), edged higher.

HCL Technologies rose 1.28% to Rs 960.40 after striking a record high of Rs 967.90 in intraday trade today, 28 August 2013.

TCS gained 3.74% to Rs 1,905.80 after striking a record high of Rs 1,942 in intraday trade today, 28 August 2013.

Infosys rose 2.02% to Rs 3,119.95 after striking a 52-week high of Rs 3,126.95 in intraday trade today, 28 August 2013.

Wipro rose 2.21% to Rs 464.95 ahead of the stock's inclusion in the National Stock Exchange's 50-share CNX Nifty index with effect from 27 September 2013. As part of periodic review, IT major Wipro will enter the National Stock Exchange's 50-share CNX Nifty index with effect from 27 September 2013 while Reliance Infrastructure would exit. The decision regarding these changes were announced after market hours on Tuesday, 27 August 2013 by the India Index Services & Products, a joint venture of NSE and Crisil, which manages the various indices at the exchange.

Earlier, Wipro was dropped from the CNX Nifty index from 1 April 2013 due to demerger of non-IT business into a separate company Wipro Enterprises.

The S&P BSE IT index was up 2.27% at 7,801.70 and was the top gainer among the sectoral indices on BSE. It outperformed the S&P BSE Sensex, which was down 2.51% at 17,517.14.

The S&P BSE IT index outperformed the market over the past one month till 27 August 2013, rising 5.35% compared with the Sensex's 9.01% fall. The index had outperformed the market in past one quarter, gaining 26.61% as against Sensex's 10.3% slide.

The rupee fell below the psychological 68 per dollar mark, a record low, in the mid-morning session with a sharp fall in domestic shares adding to concerns of foreign fund withdrawals from the equity market as well. The partially convertible rupee was trading at 67.99 per dollar, sharply lower than its close of 66.24/25 on Tuesday, 27 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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