IT shares gain as rupee hits 13-month low

TCS,Inofsys, HCL Tech, Tech Mahindra, Mindtree, CMC and Hexaware from CNX IT index are up 1-3% on NSE.

Shares of information technology (IT) companies are trading firm in otherwise weak market after the Indian rupee hit its lowest level in 13-month in early trade on Tuesday.

Tata Consultancy Services (TCS), Inofsys, HCL Technologies, Tech Mahindra, Mindtree, CMC and Hexaware Technologies from the CNX IT index are up 1-3% on the National Stock Exchange (NSE).

At 1055 hours, CNX IT index, the largest gainer among sectoral indices, was up 1.6% as compared to 1.24% decline in the benchmark index CNX Nifty.

By 9:15 a.m., the partially convertible rupee was at 63.45/46 per dollar versus its Monday's close of 62.94/95. The unit earlier dropped as low as 63.46, its weakest level since November 13, 2013, the Reuters report suggests.

IT firms show margin gains of 30-50 basis points with every percentage fall in the rupee. One basis point is one-hundredth of a percentage point. Among the individual stocks, HCL Technologies gained 3.5% to Rs 1,537 on NSE, followed by Tech Mahindra (3% at Rs 2,570), TCS and Hexaware Technologies (up 2% each at Rs 2,413 and Rs 207 respectively).