IT stocks slide after rupee hits 5-1/2 month high
Nine IT stocks fell by 0.03% to 3.44% at 11:03 IST on BSE after rupee gained for a fifth consecutive session today, 4 October 2012, to touch a five-and-half month high.
MphasiS (down 3.44%), Hexaware Technologies (down 2.35%), Tech Mahindra (down 1.03%), Mahindra Satyam (down 0.7%), Infosys (down 0.64%), HCL Technologies (down 0.36%), TCS (down 0.31%), Wipro (down 0.09%) and Oracle Financial Services Software (down 0.03%), edged lower.
The BSE IT index was down 0.57% at 5,990.70. It underperformed the Sensex, which was up 0.93% at 19,045.02.
The BSE IT index had underperformed the market over the past one month till 3 October 2012, rising 5.07% compared with the Sensex's 8.54% rise. The index had also underperformed the market in past one quarter, gaining 5.32% as against Sensex's 8.29% rise.
The rupee gained for a fifth consecutive session today to touch a five-and-half month high, breaching 52 to the dollar for the first time since 20 April 2012.
The rupee was quoting at 51.97 to the dollar after touching 51.95--its lowest level since 20 April 2012. It closed on Wednesday, 3 October 2012, at 52.1550/1650.
A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
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