Home BusinessIT stocks slump on rising Re, await results
The IT index performed badly this week as against other indices on the Bombay Stock Exchange (BSE) owing to concerns over a rising rupee.
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The Indian rupee soared to a fresh 52-week high on the back of encouraging manufacturing data and strong regional stocks. Manufacturing output in the country rose the most since May 2009, helping the rupee to strengthen. The rupee 45.76 / dollar on Friday.
The IT index dropped with the declining value of $ as US makes up most of its market. Further, the soon-to-start result season have also effeced stocks.
Results season are set to begin on January 12, 2010, with market heavy-weight Infosys declaring its Q3 numbers. It would be followed by TCS on Januray 15, and Wipro on January 20.
The index, after opening at 5,205 this week, managed to touch a high of 5,259. However, as weakness in $ persisted, the index dropped 310 points (6%) from the high to the intra-week low of 4,949. It finally ended with a loss of 4.5% or 231 points at 4,956.
On the other hand, the Sensex was up marginally at 17,540 - up 0.5% from its last week"s close.
Among the IT stocks, TCS slumped 7% to Rs 751. Infosys shed 5.7% to Rs 2,614, and Wipro was down 3.5% at Rs 694.
MphasiS and HCL Technologies dropped over 5% each to Rs 742 ad Rs 371, respectively. Rolta and Oracle Financial Services wree the other losers.
However there were few exceptions as well. Financial Technologies jumped 11% to Rs 1,416 on news of deployment of MAIA"s BI support software.
Aptech surged 5% to Rs 193. Moser Baer jumped 4% to Rs 88. Tech Mahindra, Patni Computers and NIIT added around 2% each.
(Data Source: BS Research Bureau)