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IT stocks gain on weak rupee

Analysts said large IT companies benefit from a weaker rupee

PTI|
Last Updated: Jan 03, 2020, 05.20 PM IST
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IT stocks on Friday rose by up to 2 per cent on Friday following weakness in the rupee.

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

TCS gained 1.99 per cent, Infosys was up 1.55 per cent and Wipro 1.03 per cent on the BSE.

Shares of HCL Technologies climbed 1.66 per cent and Tech Mahindra rose by 1.17 per cent.

The BSE Information Technology index closed 1.52 per cent higher at 15,778.24.

The rupee depreciated by 24 paise to 71.62 in early trade on Friday weighed by the spike in crude oil prices, after US President Donald Trump ordered deadly strike on Iranian commander.

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 US clients.

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