Eight IT shares fell by 0.63% to 2.77% at 11:12 IST on BSE as rupee edged higher against the dollar today, 16 May 2014.
Oracle Financial Services Software (down 2.77%), Tech Mahindra (down 2.39%), Wipro (down 2.03%), Hexaware Technologies (down 1.67%), Infosys (down 1.51%), TCS (down 1.34%), MphasiS (down 0.82%) and HCL Technologies (down 0.63%), edged lower.
The S&P BSE IT index was down 1.47% at 8,708.34. It underperformed the S&P BSE Sensex, which was up 855.14 points, or 3.58% at 24,760.74.
The S&P BSE IT index had underperformed the market over the past one month till 15 May 2014, falling 2.08% compared with 6.32% rise in the Sensex. The index had also underperformed the market in past one quarter, falling 5.61% as against Sensex's 17.38% rise.
In the foreign exchange market, the rupee edged higher against the dollar as early vote counting showed the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) leading in the Lok Sabha elections. The partially convertible rupee was hovering at 58.68, compared with its close of 59.29/30 on Thursday, 15 May 2014.
A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
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