IT stocks buck weak market trend, gain over 3% on rupee fall

Led by the gains, the BSE IT index ended 1.63 per cent higher at 10,523.17 .

IT stocks were in demand on Thursday, gaining as much as 3 per cent, after the rupee breached 64-level to fall to a 20-month low against the dollar, as the stronger U.S. currency boosts the sales of software firms in rupee terms.

Shares of TCS rose by 3.27 per cent to settle at Rs. 2,543.30 on the BSE. The stock was the biggest gainer among the 30-Sensex components.

HCL Tech climbed 3.31 per cent, Infosys was up 1.06 per cent and Wipro gained 1.07 per cent.

Led by the gains in these stocks, the BSE IT index ended 1.63 per cent higher at 10,523.17 .

Continuing its weakness for the fifth session, the rupee dipped below the 64-mark to end at 20 months’ low of 64.23 against the American currency on sustained capital outflows by foreign funds.

Fall in rupee versus the U.S. currency is broadly seen as positive for export-focussed sectors like the Indian IT space.

Analysts said 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 dollar from their U.S. clients.

The BSE benchmark Sensex ended at 26,599.11, down 118.26 points.