RTRS:Weaker rupee boosts IT stocks; TCS, Infosys gain
Reuters Market Eye - Shares in India's export-driven software services companies rose on Wednesday on hopes a weaker rupee would improve their profitability.
The rupee touched a two-week low on Wednesday weighed by heavy demand for dollars from oil importers, while negative shares raised foreign fund outflow concerns.
At 1:29 p.m, the rupee was at 50.61/62.
Indian IT services companies draw more than 50 percent of their revenue from the United States.
Most of the IT companies have given revenue projection based on the rupee level of 51.25-51.50 against the dollar, said Kavita Vempalli, IT analyst, Nirmal Bang.
"This (the rupee's movement) indicates that the IT companies are heading towards their target," she said.
Robust earnings from Oracle, the world's No. 3 software maker, also boosted sentiment, traders said. Oracle's software sales rose 7 percent from a year earlier to $2.4 billion in the third quarter.
