Mumbai, June 7: Led by TCS, IT stocks today gained up to 3.5 per cent in an otherwise weak stock market as sentiments turned buoyant amid weakness in the rupee value against the US currency as a stronger dollar boosts the sales of software firms in rupee terms.
Shares of IT giant TCS rose by 3.48 per cent to close at Rs 1,523.10, while Wipro was up 1.67 per cent to Rs 335.60 on the BSE.
Among others, shares of Infosys went up by 0.80 per cent, Hexaware Tech (2.43 per cent) and Tech Mahindra (1.26 per cent).
Led by the gains in these stocks, the BSE IT index settled for the day 1.59 per cent higher at 6,138.27 and was the top gainer among the 13 sectoral indices.
Fall in the rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.
“IT stocks such as TCS, Hexaware, Wipro traded in green. Rising USDINR created buying interest in these stocks,” said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.
The rupee breached 57 level to the dollar for the second day in a row. It has depreciated 5.2 per cent since the start of May.
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.
“IT stocks saw buying interest despite the overall index falling as the rupee hit one-year low below the 57-mark and weakened further against the dollar,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
In the stock market, the BSE benchmark Sensex ended the day at 19,429.23, down 90.26 points.