IT stocks gain upto 9% as rupee slumps
Shares of IT companies surged up to 9 per cent Wednesday as the rupee depreciated, a trend which is largely seen as positive for the sector.
The scrip of Tech Mahindra soared 8.85 per cent, HCL Infosystems zoomed 7.03 per cent, HCL Tech rose by 4.60 per cent, Infosys 4.02 per cent, Hexaware Technologies 2.94 per cent, Tata Consultancy Services 2.23 per cent and Wipro 0.99 per cent on the BSE.
Shares of Tech Mahindra Wednesday also surged after the IT firm said its consolidated net profit increased 27.2 per cent for the second quarter ended September.
Big IT companies earn a major chunk of their revenues from their US clients. Large IT companies benefit from a weak rupee against the dollar as it positively impacts their profit margins.
The rupee depreciated by 27 paise to close at nearly three-week low of 73.95 against the US dollar Wednesday as the US currency strengthened against the major global currencies overseas amid steady capital outflows.
The rupee Tuesday had also depreciated 23 paise to close at 73.68 against the US dollar.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)