Shares of information technology (IT) companies are in focus, in an otherwise weak market today, after the rupee hit a seven-week low at 50.64/65 to the dollar in early noon deals. In last one week, the rupee has depreciated by 3.3% from 49.02 on February 29.
The depreciating rupee to the US dollar will have a positive impact on Indian revenue for the IT services company. Every 1% change in rupee-dollar has a 40 basis points impact on the margins and, at least, 2 to 3.5% on the net profit numbers of IT services firm, the report suggests.
The Bombay Stock Exchange (BSE), IT index, the largest gainer among the sectoral indices, is up 58 points or 1% at 1404 hours, compared with almost 1% or 96 points fall in the benchmark index Sensex.
Among the individual stocks, HCL Technologies, Wipro and Infosys are trading higher by 1-3% on the BSE.