IT stocks fall on strong rupee

IT stocks on Tuesday fell in the range of 4-1 percent, mainly on rupee appreciation against the US dollar. Among frontline companies, Wipro shares dropped 2.16 percent, Tata Consultancy Services (TCS) dipped 1.60 percent, HCL Technologies Limited 1.29 percent and Infosys 1.05 percent on the BSE.

Also, MphasiS dropped 4.21 percent, MindTree 2.56 percent and Tech Mahindra fell marginally by 0.02 percent. The BSE Information Technology index close at 14,785.70, 1.21 percent lower.

The Indian rupee on Tuesday appreciated by 24 paise to close at 71.50 against the US dollar, buoyed by persistent foreign fund inflows and hopes about US-China trade logjam breakthrough. A weaker rupee is largely seen as a positive indication for export-oriented sectors such as the Indian IT industry.

IT companies receive a major chunk of their revenue in the dollar from their US clients.