TCS, Infosys, Wipro fall on rupee & profit booking

Moneycontrol Bureau

While most stocks were flying off the stacks as hot cakes, technology shares faced the heat on Thursday. When Dalal Street saw a blockbuster rally, IT stocks dragged during the day.

IT stocks were reeling under selling pressure on profit booking after seeing multi-year highs recently. Currency strength also added to the negative sentiment.

TCS, Infosys and Wipro lost around 3 percent each. BSE IT index ended the day 3 percent lower from previous close.  However, both TCS and Infosys had hit 52-week high on Wednesday. In the last six months, only defensive stocks FMCG (up 15 percent), technology (up 13 percent) and pharmaceuticals (up 14 percent) have gained while the others have been struggling in red.

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Investors lapped up IT stocks when the rupee was losing strength. The domestic currency lost around 21 percent or Rs 11 per dollar in the last six months.

However, finance minister P Chidambaram is expecting some recovery in the currency after sharp losses since May. The market is eagerly waiting for some reforms from the new RBI chief Raghuram Rajan.