Weak rupee brought cheer for IT stocks amid Rexit worries as the BSE Information Technology index gained as much as 1.50 per cent in the early trade on Monday. Indian currency slipped by 61 paise to 67.69 against the dollar in the opening trade on Monday after RBI governor Raghuram Rajan said no to a second term.
At 10.57 am, shares of HCL Infosystems and HCL Technologies were trading 4.12 per cent and 2.75 per cent up at Rs 40.40 and Rs 773.25, respectively.
Other IT majors Tech Mahindra and Infosys were trading 1.63 per cent and 1.52 per cent higher at Rs 544.35 and Rs 1196.25, respectively.
The BSE IT index was trading 1.42 per cent up at 11,484.73.
On Friday, rupee had recovered 13 paise to 67.08 against dollar on account of fresh selling by bankers and exporters and recovery in stock markets.
According to Nomura, the news is a negative for Indian rupee. “Given that this was not broadly expected by the market, we expect rupee to temporarily underperform in the region,” the brokerage house said.
On Saturday, Rajan said no to a second term in the post, a surprise decision the industry and opposition parties termed as nation’s loss.