IT stocks bucks trend on weak rupee

Shares of four IT stocks rose by 0.02% to 0.85% at 11:00 IST on BSE after rupee dropped against the dollar.

Meanwhile, the S&P BSE Sensex was down 289.76 points, or 1.13%, to 25,327.08.

Among IT stocks, TCS (up 0.33%), HCL Technologies (up 0.47%) and Wipro (up 0.02%) gained. Tech Mahindra declined 0.72%.

Infosys rose 0.95% on media reports the company has partnered with US-based venture capital firm Vertex Ventures US Fund I LP to boost its access to start-ups focused on new-age technologies. Infosys Innovation Fund has an outlay of $500 million, reports suggested. Vertex Ventures has already invested in four early-stage start-ups, including California-based storage start-up Hedvig, and Silicon Valley-based cloud security start-up PerimeterX, as per reports.

The BSE IT index had outperformed the market over the past one month till 28 September 2015, rising 1.25% compared with 2.94% fall in the Sensex. The index had also outperformed the market in past one quarter, gaining 5.68% as against Sensex's 7.89% fall.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.365, compared with closing of 66.04 during the previous trading session.

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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