IT stocks firm up on weak rupee

Seven IT stocks rose 0.09% to 1.09% at 14:43 IST on BSE as the rupee weakened against the dollar.

Meanwhile, the S&P BSE Sensex was up 288.06 points or 1.12% at 26,095.16.

Wipro (up 1.09%), Infosys (up 1.07%), TCS (up 1.05%), Tech Mahindra (up 0.97%), HCL Technologies (up 0.94%), Persistent Systems (up 0.1%) and Oracle Financial Services Software (up 0.09%) edged higher.

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 67.9675, compared with closing of 67.74 during the previous trading session.

The S&P BSE IT index had outperformed the market over the past one month till 26 December 2016, sliding 0.37% compared with the Sensex's 1.94% fall. The index had also outperformed the market in past one quarter, declining 3.9% as against the Sensex's 8.79% fall.

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