Shares of information technology (IT) companies are in limelight on the bourses gaining up to 4% on the bourses as a weakening rupee against the US dollar boosts sales of software firms in rupee terms.
Shares of HCL Technologies have rallied nearly 4% at Rs 795, while Hexaware Technologies and Tata Consultancy Services (TCS) are up 3% each at Rs 90.25 and Rs 1,531 respectively on the Bombay Stock Exchange (BSE).
Infosys is up by 2.4% at Rs 2,463, followed by Tech Mahindra (up 2.3% at 1,023) and Wipro (up 1.8% at Rs 350).
The BSE IT index, the largest gainer among sectoral index, is up 2.6% compared to 0.95% rise in benchmark Sensex at 1444 hours.
The rupee is at 60.30/31 versus Wednesday's close of 60.215/225. It has depreciated 11.92% since the start of May.
Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins. Big IT companies earn a major chunk of their revenues in dollar from their US clients.
The every 1% depreciation in the rupee helps margins by 25-50bps and earnings post-hedge by 0.4%-to-1.2, says analyst at Bank of America Merrill Lynch in recent report.
Meanwhile, analyst expect Jun-quarter results to be seasonally stronger then the March quarter as new projects signed in the beginning of the calendar year ramp up.
Infosys will kickstart the earnings season with its first quarter results on July 12.
Shares of HCL Technologies have rallied nearly 4% at Rs 795, while Hexaware Technologies and Tata Consultancy Services (TCS) are up 3% each at Rs 90.25 and Rs 1,531 respectively on the Bombay Stock Exchange (BSE).
Infosys is up by 2.4% at Rs 2,463, followed by Tech Mahindra (up 2.3% at 1,023) and Wipro (up 1.8% at Rs 350).
The BSE IT index, the largest gainer among sectoral index, is up 2.6% compared to 0.95% rise in benchmark Sensex at 1444 hours.
The rupee is at 60.30/31 versus Wednesday's close of 60.215/225. It has depreciated 11.92% since the start of May.
Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins. Big IT companies earn a major chunk of their revenues in dollar from their US clients.
The every 1% depreciation in the rupee helps margins by 25-50bps and earnings post-hedge by 0.4%-to-1.2, says analyst at Bank of America Merrill Lynch in recent report.
Meanwhile, analyst expect Jun-quarter results to be seasonally stronger then the March quarter as new projects signed in the beginning of the calendar year ramp up.
Infosys will kickstart the earnings season with its first quarter results on July 12.