IT stocks gain up to 4 pct on Indian rupee, Hexaware Tech, HCL Tech shares lead

Written by Press Trust of India | Mumbai | Updated: Jul 8 2013, 23:30pm hrs
Bucking an overall weak stock market, IT stocks today gained up to 4 per cent following weakness in the rupee against the US dollar, a trend broadly seen as positive for export-focussed sectors. Shares of Hexaware Tech rose by 3.71 per cent, while HCL Tech was up 2.98 per cent on the BSE.

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Among others, Wipro gained 1.50 per cent, Infosys (0.70 per cent) and Tech Mahindra (0.65 per cent).

Led by gains in these stocks, the BSE IT index ended the day at 6,246.22, up 0.32 per cent.

Experts said that IT stocks gained on hopes that rupee's weakness will boost dollar revenues of the software firms.

Large IT companies benefit from a weaker rupee, as it positively impacts their profit margins. Big IT companies earn a major chunk of their revenues in dollars from their US clients.

The rupee fell to a record intra-day low of 61.21 on capital outflows and demand from oil importers after crude oil in overseas markets climbed to nine-month high.

In the stock market, the BSE 30-shares Sensex ended the day at 19,324.77, down 171.05 points or 0.88 per cent.