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Shares of IT companies today rose in the range of 1-4 per cent as sentiments turned buoyant amid the rupee touching a fresh one-month low of 56.03.
Shares of Wipro climbed 4.43 per cent to close at Rs 377.50 and Infosys rose 3.58 per cent to Rs 2,422.20. TCS was up 1.11 per cent to Rs 1,376.25 on the BSE.
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A stronger dollar boosts the sales of IT firms in rupee terms.
HCL Technologies gained 1.25 per cent,MphasiS (1.09 per cent),Oracle Financial Services Software (0.91 per cent) and Tech Mahindra gained (0.73 per cent).
On the back of this,the BSE IT index ended 2.55 per cent higher at 5,872.21 points and was the top gainer among the 13 BSE sectoral indices.
Analysts said IT stocks gained ground amid a falling rupee and ahead of the ECB meeting wherein a crucial decision is expected to curb the ongoing Eurozone crisis.
The rupee,however,recouped all losses and closed 25 paise higher at 55.66 a dollar by the closing of forex market.
“IT stocks hogged the limelight…Sentimentally,a rising dollar against rupee is supporting the rise in stock prices of T stocks,” Inventure Growth & Securities Head Research Milan Bavishi said.
Stocks More on Wipro.
Company INFO More on Wipro.
“Bulk of IT business comes from the US and Europe. Any kind of monetary easing measure adopted in these regions could result in improvement in business conditions there,which has been currently hit due to slowdown in US and debt crisis in Europe,” Bavishi added.
Meanwhile,in broader market the BSE benchmark Sensex closed at 17,346.27,up 32.93 points.
