Mumbai: Technology stocks on Tuesday sizzled even as analysts and exporters murmured the prospects of a weaker Rupee amid currency volatilities. In the intra-day session on Tuesday, the US-Dollar weakened while the Rupee appreciated against the greenback.
In the session on Tuesday, stocks of Infosys, Tata Communications, Wipro, Tech Mahindra, Persistent Systems, Mphasis, HCL Technologies sizzled.
Among benchmarks, the BSE Sensex traded upwards by 0.4% to settle at 81101.32. This, enabled by gains witnessed on counters of Infosys, Tech Mahindra, and TCS. Among non-IT stocks, stocks of Mahindra & Mahindra, Maruti, Adani Ports, and Tata Motors enabled the Sensex.
The NSE Nifty50 too traded in a similar range to settle at 24,868.60.
Sectoral indices such as BSE IT, Focused Teck, and NSE Nifty IT too saw a commensurate gain from the movement in IT stocks.
While markets may seem rattled by concerns on tariffs, a weaker Rupee has been perceived as an opportunity for Indian IT service firms to leverage.
A weaker Rupee is likely to percolate into better margins for investors and companies alike. Besides a weaker Rupee, heavyweight stock Infosys has been reported as considering a share buyback - probably resulting in movement in the markets.
On Tuesday, analysts quoted by multiple agencies showed renewed optimism in IT stocks. Brokerage firms such as Nuvama Institutional Equities, Axis Capital, JM Financial, and HDFC Securities have reportedly revised their outlook reports. This even as the Rupee has slid by as much as 3 percent against the US greenback in the year so far.
As of the time of publishing this article, a Dollar was quoting a price of 88.12 against the Indian Rupee.
Disclaimer: This article is solely for educational purposes. This article should not be construed as an investment advice to invest in markets or in IT stocks.
