Shares of information technology (IT) are continued to reel under pressure trading lower by up to 5% on the National Stock Exchange (NSE) after the rupee hits 11 month high against dollar today.
A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
HCL Technologies, Wipro, Tata Consultancy Services (TCS) and Infosys are down 4-5%, while Infotech Enterprises, NIIT Technologies, Mind Tree and Persistent Systems dipped 3% each on the NSE.
The NSE IT share index, the largest loser among sectoral indices, is down 4.4% as compared to 0.36% rise in the benchmark index CNX Nifty at 1030 hours.
The rupee to its strongest in 11 months against the dollar on expectations of continued robust foreign buying in domestic shares and debt after the Bharatiya Janata Party swept the country's elections.
At 9:04 a.m, the rupee was trading at 58.49/50 per dollar, after hitting 58.47; it’s strongest since June 18, 2013. The pair had closed at 58.79/80 on Friday, the Reuters report suggests.
Among the individual stocks, HCL Technologies and Wipro have tanked 5% each at Rs 1,291 and Rs 477 respectively, while Infosys and TCS declined 4.5% each at Rs 3,030 and Rs 2,056 respectively.
A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
HCL Technologies, Wipro, Tata Consultancy Services (TCS) and Infosys are down 4-5%, while Infotech Enterprises, NIIT Technologies, Mind Tree and Persistent Systems dipped 3% each on the NSE.
The NSE IT share index, the largest loser among sectoral indices, is down 4.4% as compared to 0.36% rise in the benchmark index CNX Nifty at 1030 hours.
The rupee to its strongest in 11 months against the dollar on expectations of continued robust foreign buying in domestic shares and debt after the Bharatiya Janata Party swept the country's elections.
At 9:04 a.m, the rupee was trading at 58.49/50 per dollar, after hitting 58.47; it’s strongest since June 18, 2013. The pair had closed at 58.79/80 on Friday, the Reuters report suggests.
Among the individual stocks, HCL Technologies and Wipro have tanked 5% each at Rs 1,291 and Rs 477 respectively, while Infosys and TCS declined 4.5% each at Rs 3,030 and Rs 2,056 respectively.
