Tags:
Journalism of Courage
Led by Infosys Technologies,IT stocks today surged by as much as 6 per cent on the BSE,following a Indian rupee declining further to 48-level against the US dollar.
Shares of Infosys settled 5.78 per cent higher at Rs 2,353.05 on the BSE and was the biggest contributer to the 242-point gain in benchmark Sensex.
Country biggest software exporter TCS jumped 2.24 per cent to close at Rs 1,017.05.
Other IT companies such as Wipro climbed 4.34 per cent,HCL Tech surged 4.25 per cent and Mphasis rose by 1.94 per cent.
Led by gains in the bellwether stocks,the BSE IT index ended 4.27 per cent higher at 5,039.74.
The Indian slumped to its two-year low of 48.01 in early trade in the Interbank Foreign Exchange (Forex) market before closing 47.64/65 against US currency.
“Depreciating rupee meant a better earnings growth for the IT companies,” Inventure Growth and Securities Head Equity Amit Chheda said.
Analysts said large IT companies benefit by weakness in the rupee as it helps in improving their profit margins.
IT companies like TCS,Infosys,Wipro and HCL Technologies earn a major chunk of their revenues from the US in dollar.
