Mumbai: IT stocks gained as much as 3 percent today amid the rupee plunging to nine-month low of 62.25 against the dollar, as the stronger US currency boosts the sales of software firms in rupee terms.
Shares of Tech Mahindra climbed 2.97 percent and Wipro rose by 1.25 percent on the BSE. Among others, HCL Tech was up 1.09 percent, TCS rose 1.08 percent and Infosys firmed up 1 percent.
Led by the gains in these stocks, the BSE IT index rose by 1.27 percent to settle at 11,001.73 and was the top gainer among the 12 sectoral indices.
The rupee today plunged to nine-month low of 62.25 against the dollar but recouped losses to close the day at 61.94.
Fall in the rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.
Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.
Big IT companies earn a major chunk of their revenues in dollar from their US clients.
