IT stocks fall as much as 5% on strong rupee

Written by PTI | Mumbai | Updated: Mar 8 2014, 00:21am hrs
Bucking strong market sentiments, IT stocks today fell by as much as 5 per cent as the Indian rupee strengthened against the dollar.

Shares of Wipro lost 3.25 per cent, while Infosys was down by 2.47 per cent and Wipro went down by 0.72 per cent on the BSE Sensex.

Among others, Tech Mahindra's shares plunged 4.61 per cent, Hexaware Technologies slumped 3.60 per cent and HCL Tech fell by 0.41 per cent.

Tracking the losses in these stocks, the BSE IT index lost 1.97 per cent to settle at 9,520.

"Despite the strength in the index, IT stocks were under pressure as the rupee strengthened to reach near 61 level against the dollar," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

A firm rupee affects the operating profit margins of IT firms as the sector derives huge chunk of revenue from the US market.

Meanwhile, in a strong stock market, the BSE benchmark Sensex ended at 21,919.79, up 405.92 points.