D-Street Buzz: Nifty IT index rises almost 4% as rupee drops to 3-week low against dollar
Stocks such as Coforge, Mindtree, Mphasis, Infosys, HCL Tech and TCS gained up to 6 percent.
March 30, 2021 / 02:42 PM IST
Most IT stocks were trading with healthy gains in intraday trade on March 30, reaping gains of the rupee's weakness against the US dollar.
After opened 14 paise lower at 72.81 per dollar against the previous close of 72.67, the Indian currency soon breached the 73-mark. At 1420 hours, the rupee was quoting at 73.24 a dollar.
At the current level, the rupee near its three-week low as the dollar rises against its global peers amid rising bond yields.
IT stocks gain on the dollar's strength against the rupee as a major portion of their revenue comes in the American currency.
The Nifty IT index jumped almost 4 percent intraday, with stocks such as Coforge, Mindtree, Mphasis, Infosys, HCL Tech and TCS gaining up to 6 percent.
At 1425 hours, the index was 3.42 percent up at 26,253 with only shares of Info Edge (Naukri) trading in the red.
The market benchmarks Sensex and Nifty were up with gains of over 2 percent each. The Sensex jumped over 1,250 points and the Nifty50 reclaimed the crucial 14,850 supported on across-the-board buying.
These strong gains, which come after the market closed a percent higher in the previous session on March 26, come as a relief for participants as it reinforces the belief that barring intermittent profit-taking, the bull run will continue.