It?s a contrarion trend in the IT sector stocks. When the Sensex is trading at its all-time high, IT stocks have been reeling under the pressure of the appreciating rupee against the US dollar. But right now with the rupee breaching the Rs 40/dollar, investors have slowly started reducing their exposure in the IT stocks. As a result, many of the IT stocks including the large-cap companies are now trading near their 52-week low. On Monday, the BSE IT index bucked the general positive mood in the market and ended the day down 78.51 points, or 1.77%, at 4,349.83 points.
Mutual fund managers seem to be under weight on the IT sector at the moment. Anoop Maheshwari, head-equities, DSP ML MF, said, ?The IT sector does seem to be in a drifting mode. The appreciating rupee is what is spoiling the party for the IT firms when the market is in an upbeat mode. However, it is unlikely that the results of these companies in this quarter will be affected as the long term fundamentals of these companies remain strong.? The stock of Infosys Technologies closed near its 52-week low of Rs 1,745.15 at Rs 1,763.25 down by Rs 58.70, or 3.22%, while Satyam closed the day down by Rs 9.70, or 2.32%, at Rs 409.15 near its 52-week low of Rs 396.
