Weaker rupee makes IT shares bullish

Amidst Global economic concerns led FII selling in Indian capital, dollar appreciated against the rupee, and rupee touched its one year low Rs. 48.

Rupee breaches 1 year low

With FII taking back dollars home and rising demand of dollar from OMC’s (oil marketing companies), created the scarcity of dollar and as result dollar appreciated.

Weaker dollar comes heavily on Indian companies which need to import significant amount goods and services from abroad, but on the other side it’s a boon for export oriented companies like IT, garment exporters, gems and jewelry and some Pharma companies.

Rupee reaching Rs.48 gave a fillip to IT shares and BSE IT index today surged by 2.21 %.

Major IT shares like Infy, HCL Tech, Wipro, and TCS are showing gains of 2.8%, 2.65%, 2.4%, and 1.6% respectively.