Mumbai: IT stocks saw massive selling pressure today, falling as much as 6 per cent, after the rupee surged to 58.37 against the US dollar intra-day.
Shares of TCS, the country's most valued firm declined by 5.69 per cent to settle at Rs 2,034.70 on the BSE. During the day, the scrip lost 7.27 per cent to Rs 2,000.50. The blue-chip stock was the worst performers among the 30-Sensex constituents. Infosys' stock fell by 4.88 per cent, while Wipro lost 4.25 per cent and HCL Tech was down 4.48 per cent.
Similarly, shares of Tech Mahindra plunged 4.66 per cent and Hexaware Technologies fell by 1.39 per cent. Tracking losses in these stocks, the BSE IT index fell by 4.95 per cent to settle at 8,214.41. "Export oriented stocks like Pharma and IT were hit hard on weak rupee," said K K Kavikondala, CEO, WealthRays Securities.
Market experts expect that export driven stocks may remain flat as the rupee strengthens. Analysts said that exporters such as IT firms that earn a majority of their revenues in dollars may see dip in their profitability if the rupee continues to rise against the dollar. Broader benchmark gains were capped as IT exporters fell. The Sensex ended the day at 24,363.05, up 241.31 points.
