IT shares advance on weak rupee

Shares of nine IT companies rose 0.25% to 3.19% at 10:15 IST as the rupee slipped against the dollar in foreign exchange market.

Oracle Financial Services Software (up 3.19%), Hexaware Technologies (up 1.79%), TCS (up 1.50%), MindTree (up 1.32%), HCL Technologies (up 1.21%), Tech Mahindra (up 1.09%), Infosys (up 1.08%), Wipro (up 1.07%) and Mphasis (up 0.25%) advanced.

Persistent Systems was down 4.31%.

Meanwhile, the S&P BSE IT index was up 1.16% at 15,871.66. It outperformed the S&P BSE Sensex, which was down 0.23% at 36,388.37.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.0050, compared with its close of 71.81 during the previous trading session.

 

A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

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