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IT sector faces 'rupee' blues

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BS Reporter Mumbai

TCS ended at Rs 714, weaker by Rs 19 or 2.6%, on the BSE.

Infosys closed at Rs 2525, lower by Rs 59 or 2.3 and Wipro shut at Rs 677, down Rs 15 or 2.5%.

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(Updated at 1253pm)

The IT stocks are going through a rough patch, given the inverse co-relation between the rupee and IT sector.

The rupee has appreciated by 10 paise in early trade to touch a 15-month high of 45.74 a dollar, on the back of record FII inflows and firming Asian currencies. The Indian currency has appreciated nearly 2% so far this year.

And the IT index expectedly shed 2% by early afternoon, with heavyweights such as TCS, Wipro and Infosys correcting more than 2%.

Mid-cap IT stocks such as Mastek, Datamatics and Financial Technologies have also gone out of favour.

 

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First Published: Jan 07 2010 | 4:20 PM IST

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