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Led by Infosys Technologies, shares of IT companies surged by up to 2.74 per cent on the BSE after the rupee fell by 42 paise to a fresh two-year low of Rs 48.23 against the US dollar in early trade today.
Shares of Infosys Technologies, the top performer in morning trade, jumped by 2.74 per cent to an early high of Rs 2,426.50 on the BSE.
Similarly, the country’s biggest software exporter, TCS, rose by 2.72 per cent to touch an early peak of Rs 1,045.50.
Wipro, too, rose by 2.47 per cent to Rs 350.
In addition, HCL Tech climbed by 2.30 per cent, Mphasis rose by 1.42 per cent and Tech Mahindra jumped by 1.71 per cent.
Led by gains in these stocks, the BSE IT index was trading 2.41 per cent higher at 5,174.60.
The rupee fell amid weakness of the euro as worries over the European debt crisis deepened following Standard & Poor’s downgrade of Italy’s sovereign rating.
Analysts said large IT companies benefit by weakness in the rupee as it helps in improving their profit margins.
IT companies like TCS, Infosys, Wipro and HCL Technologies earn a major chunk of their revenues from the US in dollars.
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