IT stocks rebound as rupee slips

IT majors Wipro, TCS, Infy among the top gainers on Nifty50 even as the market dipped during the last trading session on Monday. The Indian rupee slipped below its sentimental support level of Rs. 70 per US dollar.

A spring back in crude oil prices in the international market has put the Indian rupee on the back-foot in intraday trade on Monday. The export-oriented IT industry earns most of its revenues in US dollars, thus a depreciation in the rupee bodes well for the industry. Oil prices reversed their declining trend as market participants believe that lower prices are curbing output from the US oilfield and that OPEC plus nations will implement production cut soon. PEC nations implement production cut. At 2:45 pm, Brent crude futures were trading at US$54.18, up by 0.15 per cent.

Among IT stocks on the Nifty IT index Wipro was trading at Rs. 327.05 per share, up by 1.54 per cent, TCS was at Rs. 1,921.30 per share, up by 1.35 per cent and Infy was at Rs. 650.50 per share, up by 0.67 per cent, while NIIT and Tech Mahindra were trading in the green. Whereas Infibeam was the biggest loser down by 3.46 per cent at Rs. 47.40 per share. The Nifty IT index was up by 0.43 per cent. The benchmark index Nifty50 was at 10,666.75, down by 87.25 points or 0.81 per cent, while BSE Sensex was at 35,488.87, down by 253.20 points or 0.71 per cent.