The IT index of National Stock Exchange (NSE) has rallied by nine per cent, outperforming the remaining 10 sectoral indices, during the three months ended September 30, primarily on account of weakness in the rupee against the dollar.
The 10-share IT index of the NSE has given a return of 9.01 per cent during July-September period, an analysis of indices showed.
The IT index is followed by CNX Media and CNX Pharma, which have given a return of 6.48 per cent and 5.87 per cent, respectively,
Barring these three indices, all others — auto, bank, PSU bank, energy, finance, FMCG, metal, pharma and realty — have given negative returns.
CNX Metal index (27.52 per cent) was the biggest loser during July-September period of the current fiscal.
According to market analysts, depreciation of the rupee against the US currency is a positive move for export-focussed sectors like the IT space.
Like exporters, IT companies earn majority of their revenue in dollars and weaker rupee means exporters get more rupee per US dollar, they added.
The 50-share Nifty has plunged by 5.01 per cent during the period under review.
The drop in Nifty has been much higher than the mid-cap and small-cap which fell 0.19 per cent and 0.35 per cent, respectively.
All the indices will be rebranded to include ‘Nifty’ in their names against the name ‘CNX’ used currently from November 9.
NSE’s flagship ‘CNX Nifty’ index would be rebranded as ‘Nifty 50’ index.