Led by Infosys, IT stocks logged smart gains on the bourses today, as a plunge in rupee value to a record level boosted the prospects for an increase in their dollar earnings from the overseas markets.
The rupee today hit a record low level of Rs 52.73 versus the US currency — a move broadly seen as a positive for export—focussed sectors like the Indian IT space.
Shares of IT giant Infosys settled 2.33 per cent higher at Rs 2,723.15 on the BSE and the stock the biggest contributor to the 119.32-points gain in the benchmark Sensex.
Country’s biggest software exporter TCS gained 1.84 per cent to close at Rs 1,084.55.
Among other IT stocks, Wipro climbed 1.70 per cent, HCL Tech settled up 1.14 per cent and Mphasis rose by 1.56 per cent.
Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.
IT companies like TCS, Infosys, Wipro and HCL Tech earn a major chunk of their revenues in dollar from their US clients.
The BSE IT index also ended 1.95 per cent higher at 5,585.40 points.