IT stocks extend recent gains on weak rupee

Hexaware Technologies (up 4.28%), CMC (up 4.06%), Mahindra Satyam (up 3.42%), Tech Mahindra (up 2.87%), HCL Technologies (up 2.41%), Infosys (up 1.30%), TCS (up 0.74%) and Oracle Financial Services Software (up 0.32%), edged higher.

Wipro was down 0.49%. The stock turned ex-dividend today, 27 June 2013, for final dividend of Rs 5 per share for the year ended 31 March 2013.

The BSE IT index was up 1.29% to 6,096.72. It outperformed the BSE Sensex, which was up 0.85% at 18,709.12.

The BSE IT index had outperformed the market over the past one month till 26 June 2013, rising 1.08% compared with the Sensex's 5.85% fall. The index had, however, underperformed the market in past one quarter, falling 11.59% as against Sensex's 0.81% fall.

The rupee gained on Thursday, 27 June 2013, backing off from a record low of 60.76 hit on Wednesday, 26 June 2013, as the country's current account deficit narrowed in the January-March quarter, easing some concerns about the funding of the deficit. The rupee was hovering at 60.55 against the dollar, higher than Wednesday's close of 60.7150/7250. 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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