IT shares gain on weak rupee, recent underperformance

Reuters Market Eye - Shares in Indian IT companies gain, tracking weakness in the rupee and as recent underperformance makes their short-term valuations attractive, dealers say.

Tata Consultancy Services Ltd is up 1.15 percent, Wipro Ltd gains 4.22 percent, while Infosys Ltd edges up 0.81 percent.

The rupee was weaker in early trade on Tuesday, tracking weakness in most Asian peers ahead of the U.S. Federal Reserve's meeting, where it is widely expected to announce tapering of bond purchases.

BSE IT index <.BSEIT> fell 4.7 percent in previous four days, mainly on the rupee's appreciation compared with a 1.3 percent fall in the BSE Sensex in the same period.

 

(Reporting by Abhishek Vishnoi)