Shares in IT firms saw sharp selling pressure on account of rupee appreciation Monday. A rise in rupee adversely affects export oriented companies, who earn their revenues in dollars.
On the BSE IT index, nine of the 11 stocks traded in the red. The sharp fall in these stocks was in contrast to other groups of stocks, which extended Friday's rally.
Frontline IT stocks were the worst affected. TCS, India's biggest software services exporter, traded 4.7 per cent lower at Rs 1,345. Infosys declined 2.8 per cent, while HCL Tech traded 2.7 per cent lower.
Though most firms hedge currency to reduce risk, a stronger rupee is a sentimental negative for such stocks.
Meanwhile, investment bank HSBC raised its forecast for the Indian rupee at the end of December this year to 52 to a dollar from 57 previously, citing the government's recently announced reform moves as well as the Federal Reserve's quantitative easing.
On the BSE IT index, nine of the 11 stocks traded in the red. The sharp fall in these stocks was in contrast to other groups of stocks, which extended Friday's rally.
Frontline IT stocks were the worst affected. TCS, India's biggest software services exporter, traded 4.7 per cent lower at Rs 1,345. Infosys declined 2.8 per cent, while HCL Tech traded 2.7 per cent lower.
Though most firms hedge currency to reduce risk, a stronger rupee is a sentimental negative for such stocks.
Meanwhile, investment bank HSBC raised its forecast for the Indian rupee at the end of December this year to 52 to a dollar from 57 previously, citing the government's recently announced reform moves as well as the Federal Reserve's quantitative easing.
