IT stocks gain up to 3% on weak rupee

IT stocks gained up to 3 per cent higher amid weakness in the domestic currency against the dollar as the stronger US unit boosts the revenue of of software firms in rupee terms.
Shares of Wipro gained 3.22 per cent, while Infosys was up 2.66 per cent and TCS rose 1.37 per cent on the BSE.
Wipro was the top gainer among the 30-Sensex scrips.
Among others, Hexaware Technologies climbed 1.57 per cent, HCL Tech (1.43 per cent) and Tech Mahindra (1.39 per cent).
Led by gains in these stocks, the BSE IT index was up 1.94 per cent at 10,895.40.

Analysts said that IT stocks bucked the broader market weakness after rupee fell to seven-month low against the dollar.

"In-line with benchmark index, almost all the sectoral indices ended on negative to flat note except IT, which gained nearly 2 per cent due to weakness in currency against the US dollar," said Jayant Manglik, President-retail distribution, Religare Securities.
A fall in 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.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.92 and immediately touched a low of 61.95 against the dollar, a level not seen since March 4, 2014 when it had logged an intra-day low of 62.15.

It however, recovering from nearly seven-month low level, to close the day's trade 14 paise higher at 61.61 against the US currency amid fresh dollar selling by exporters and some banks ahead of long weekend holidays.