IT stocks gain as much as 4 pc on weak rupee

IT stocks today rose by as much as 4 per cent as a weak rupee against the US dollar boosts the margins of the export-oriented sector.
Among the blue-chips, shares of TCS gained 2.43 per cent to Rs 2,268.55, Infosys rose by 1.90 per cent to Rs 3,242.20 and Wipro went up by 1.21 per cent to Rs 535.40 on the BSE.
Hexaware Tech was up 3.64 per cent, while Tech Mahindra climbed 0.10 per cent.
Led by the gains in these stocks, the BSE IT index rose by 1.54 per cent to 9,032.49.
Market experts said that IT stocks were in demand in an otherwise lacklustre market after the rupee dipped below the 60 mark against the dollar.

The rupee today slipped below 60-mark and closed sharply down by 39 paise at a six-week low of 60.16 against the dollar on sustained demand of the American currency from oil importers, amid rising oil prices.

Fall in the rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.
Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.
Big IT companies earn a major chunk of their revenues in dollar from their US clients.
In the broader market, the BSE benchmark Sensex ended at 25,190.48, down 37.69 points.