Shares of information technology (IT) companies are under pressure and trading lower by up to 6% in otherwise firm market after the Indian rupee soared to the highest level in almost three months against dollar.
Tata Consultancy Services (TCS), Wipro, Tech Mahindra, HCL Technologies and Infosys from the frontline IT stocks are down 1-3%, while NIIT Technologies, Tata Elxsi, Infotech Enterprises, Hexaware Technologies and Polaris Financial Technology are trading lower in the range of 4-6% on the BSE.
The S&P BSE IT index has dipped nearly 2% or 185 points, as compared to 1% rise in benchmark S&P BSE Sensex at 1000 hours.
The partially convertible currency rose to 60.95 to the dollar, a level last seen on December 9. It was last changing hands at 60.95/96 versus Thursday's close of 61.11/12, the Reuters report suggests.
A rise in rupee adversely affects export oriented companies, who earn their revenues in dollars.
For IT services exporter sector, which earns close to 60% of its revenue in US Dollar, a 1% rise in rupee typically results in an operating margin decline of 30 to 40 basis points.
Among the individual stocks, NIIT Technologies has dipped 6% to Rs 422, while Hexaware Technologies and Infotech Enterprises have slipped 4% each at Rs 156 and Rs 357 respectively. Polaris Financial Technology and Tata Elxsi are down 3.5% each at Rs 147 and Rs 582 respectively.
Tata Consultancy Services (TCS), Wipro, Tech Mahindra, HCL Technologies and Infosys from the frontline IT stocks are down 1-3%, while NIIT Technologies, Tata Elxsi, Infotech Enterprises, Hexaware Technologies and Polaris Financial Technology are trading lower in the range of 4-6% on the BSE.
The S&P BSE IT index has dipped nearly 2% or 185 points, as compared to 1% rise in benchmark S&P BSE Sensex at 1000 hours.
The partially convertible currency rose to 60.95 to the dollar, a level last seen on December 9. It was last changing hands at 60.95/96 versus Thursday's close of 61.11/12, the Reuters report suggests.
A rise in rupee adversely affects export oriented companies, who earn their revenues in dollars.
For IT services exporter sector, which earns close to 60% of its revenue in US Dollar, a 1% rise in rupee typically results in an operating margin decline of 30 to 40 basis points.
Among the individual stocks, NIIT Technologies has dipped 6% to Rs 422, while Hexaware Technologies and Infotech Enterprises have slipped 4% each at Rs 156 and Rs 357 respectively. Polaris Financial Technology and Tata Elxsi are down 3.5% each at Rs 147 and Rs 582 respectively.