IT stocks gain as rupee touches all-time low

Bucking weak broader market sentiment, IT stocks today rose by up to 2 per cent as rupee touched its all-time low of 68.86 in day trade.
A weak rupee against the dollar boosts the margins of the export-oriented sector.
Shares of TCS went up by 1.38 per cent, Infosys jumped 1.33 per cent and Wipro rose by 0.45 per cent on BSE.
Besides, Tech Mahindra advanced by 1.76 per cent, Hexaware Tech (0.58 per cent) and HCL Tech (0.45 per cent).
Led by gains in these stocks, the BSE IT index went up by 1.23 per cent to end at 9,434.05.

The rupee went into a free fall today as it slumped for the fifth session and even hit an all-time low of 68.86 against the dollar as the demonetisation after-effect played out and concerns grew about a possible Fed rate hike in the near term.

Fall in the rupee versus the US currency is broadly seen as positive for export-focused 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 stock market, the BSE Sensex slumped 191.64 points to end at 25,860.17.