Seven IT shares rose by 0.52% to 3.81% at 13:37 IST on BSE after the rupee weakened against the dollar today, 3 January 2014.
Hexaware Technologies (up 3.81%), TCS (up 2.73%), Infosys (up 2.13%), Tech Mahindra (up 1.20%), Oracle Financial Services Software (up 0.98%), Wipro (up 0.53%) and HCL Technologies (up 0.52%), edged higher.
The S&P BSE IT index was up 1.93% at 9,206.39. It outperformed the Sensex, which was down 0.54% at 20,776.40.
The S&P BSE IT index had outperformed the market over the past one month till 2 January 2014, rising 6.89% compared with the Sensex's 0.05% fall. The index had also outperformed the market in past one quarter, gaining 15.11% as against Sensex's 7.03% rise.
In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 62.46, weaker than its close of 62.26/27 on Thursday, 2 January 2014.
A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
IT sector bellwether Infosys unveils Q3 December 2013 results on 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year.
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