Pharma, IT stocks gain on weak rupee

Nine pharma stocks rose by 0.76% to 13.88% and six IT stocks gained by 0.57% to 1.68% at 11:50 IST on BSE as rupee dropped against the dollar.

Meanwhile, the BSE Sensex was down 80.51 points, or 0.31%, to 25,742.48.

Among pharma stocks, Cadila Healthcare (up 1.56%), Aurobindo Pharma (up 0.76%), Lupin (up 3.22%), Wockhardt (up 0.77%), Dr Reddy's Laboratories (up 0.98%), Divi's Laboratories (up 1.27%), Cipla (up 1.08%) and Glenmark Pharmaceuticals (up 0.86%) gained. Sun Pharmaceutical Industries declined 0.51%.

Elder Pharmaceuticals surged 13.88% after the company scheduled a board meeting on 28 September 2015 to consider the proposal for sale of step down overseas subsidiaries. The announcement was made after market hours yesterday, 23 September 2015.

Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.

Among IT stocks, Tech Mahindra (up 1.67%), HCL Technologies (up 1.35%), TCS (up 0.65%), Oracle Financial Services Software (up 1.68%), MphasiS (up 0.57%) and Infosys (up 1.22%) edged higher. Wipro declined 0.72%.

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 dropped past 66 mark against the dollar. The partially convertible rupee was hovering at 66.12, compared with closing of 65.99 during the previous trading session.

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