Wipro, TCS, Infosys and Other IT Stocks Rise as Rupee Hits Fresh Record Low

The Indian IT sector opened the day on a high note as the rupee touched a fresh record low against the US dollar. The rupee’s decline created a positive environment for IT firms, as a large part of their revenue comes from dollar-denominated contracts.

The surge in share prices helped the Nifty IT index climb to become one of the top sectoral gainers, reflecting investor optimism in the technology space despite broader market uncertainties.

Market Performance

• Nifty IT Index: Up around 1 percent to 37,885 at 11:35 am
• Rupee Movement: Opened at 89.96 against the US dollar and slipped further to 90.25, marking an all-time low.

The depreciation of the rupee comes amid persistent foreign portfolio outflows and stalled India-US trade talks. While the weakening dollar index could have offered some relief, domestic pressures kept the rupee under pressure.

For IT companies, this presents a silver lining. With revenues largely dollar-denominated, a weaker rupee often translates into higher earnings in rupee terms. Investors are closely watching these trends, as currency movements can significantly impact quarterly performance.

Key IT Stocks in Action

• Wipro: Emerged as the top gainer on the Nifty IT index, climbing over 2% to trade at Rs 255.54.
• Tata Consultancy Services (TCS): Jumped nearly 2%, marking a strong session for the sector.
• Infosys, Mphasis, Tech Mahindra: Each saw gains of around 1%, reflecting steady momentum in the IT space.
• LTI Mindtree, Coforge, HCLTech: Recorded marginal gains, trading comfortably in the green.
• Persistent Systems: Bucked the trend, with shares slipping over 1% despite sectoral gains.

The overall movement indicates selective buying in major IT firms, while smaller or niche players are showing mixed performance.

What the Numbers Suggest?

• The Nifty IT index’s 1% rise underscores the sector’s resilience in volatile currency conditions.
• Wipro and TCS, being large-cap IT companies, are particularly sensitive to currency swings due to their significant US revenue exposure.
• Even as some stocks gain modestly, others like Persistent Systems highlight the diverse market reaction within the IT space.

Summary

The day’s trade highlights the direct link between currency movements and IT sector performance. As the rupee slides past the 90-mark against the US dollar, companies earning heavily from international clients are seeing their rupee-denominated revenues benefit.

The Nifty IT index continues to reflect the broader market sentiment toward the technology sector, combining currency-driven gains with steady investor interest in large-cap IT firms.