IT indices hit new high on weak rupee; TCS, Infosys hit fresh highs

IT indices hit new high on weak rupee; TCS, Infosys hit fresh highs

Shares of information technology (IT) companies continued their upward journey with Nifty IT and the S&P BSE IT index hitting their respective new highs on weak rupee against the US dollar.

Nifty IT index (15,796) and the S&P BSE IT index (15,578), up nearly 2% each have touched new high on Friday. In comparison, the benchmark indices were up 0.4% each.

Thus far in the calendar year 2018, Nifty IT index rallied 35% against 12% rise in the Nifty 50 index.

Tata Consultancy Services (TCS), Infosys, HCL Technologies, Mindtree, Wipro, Tech Mahindra, Tata Elxsi and KPIT Technologies from the Nifty IT index were trading higher by up to 3% on the NSE. NIIT, Intellect Design Area, Aptech, NIIT Technologies and Zensar Technologies were up in the range of 1% to 2%.

The rupee hit a new low breaching 71 per dollar mark for the first time today. Thus far in the CY18, the rupee has depreciated by 10.8% against the US dollar.

A cheaper rupee bodes well for Indian IT companies, as they derive a huge share of their revenues from exports.

Among the individual stocks, Infosys hit a new high of Rs 1,453, up 2.5% on the BSE in intra-day trade. The stock was up 5% in past five trading sessions after the company has fixed September 5, 2018, as the record date for the purpose of allotment of bonus shares/stock dividend. The stock will turn ex-date for bonus shares on September 4, 2018. The record date announcement was made during market hours on Friday.