Shares of information technology (IT) companies are in limelight on the bourses trading higher by 3% after the Indian rupee weakened against the US dollar in early trade today.
Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro are up 3% each on the Bombay Stock Exchange (BSE).
The BSE IT index, the largest gainer among sectoral indices, has rallied nearly 3% as compared to 1.5% rise in benchmark S&P BSE Sensex at 1024 hours.
The Indian rupee touched 68.62 to the dollar against the Tuesday's close of 67.73. It fell to a record low of 68.85 last week. In past three days, the rupee has been deprecated by 4.43% against dollar.
IT companies benefit from a weak rupee since they earn a majority of their revenue in US dollars. IT firms show margin gains of 30-50 basis points with every percentage fall in the rupee. One basis point is one-hundredth of a percentage point.
Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro are up 3% each on the Bombay Stock Exchange (BSE).
The BSE IT index, the largest gainer among sectoral indices, has rallied nearly 3% as compared to 1.5% rise in benchmark S&P BSE Sensex at 1024 hours.
The Indian rupee touched 68.62 to the dollar against the Tuesday's close of 67.73. It fell to a record low of 68.85 last week. In past three days, the rupee has been deprecated by 4.43% against dollar.
IT companies benefit from a weak rupee since they earn a majority of their revenue in US dollars. IT firms show margin gains of 30-50 basis points with every percentage fall in the rupee. One basis point is one-hundredth of a percentage point.