IT index down as rupee rises to nine year high
IT stocks, led by Infosys Technology, on Monday declined across the board on heavy selling by funds and retail investors.business Updated: Sep 24, 2007 18:07 IST
IT stocks, led by Infosys Technology, on Monday declined across the board on heavy selling by funds and retail investors fearing the weakening dollar might dent earning of software exporting companies.
While the benchmark Sensex surged over 281 points to its new peak of 16,845.83, the IT index fell by 71.51 points to 4,349.83 with almost all the sectoral stocks surrendering fresh ground on heavy profit booking.
The markets were in bullish mood on the back of firming global trend and key indices continued to set new peaks.
The rupee appreciated to 39.8138 per dollar today, the highest since May 1998, and raised fear in the market that the earning of IT companies might be effected. About 60 per cent of the business of Indian software companies comes from the US market.
In the IT section, Infoys Technology suffered most when it dipped by Rs 58.70 at Rs 1,763.25. Satyam computer followed suit and lost Rs 9.70 to Rs 409.15, Patni computer by Rs 9.35 at Rs 454.10 and TCS by Rs 9 at Rs 1,005.95 and Tech Mah by Rs 15.65 at Rs 1,266.45.
However, Wipro managed to end with a moderate gain of Rs 2.85 at Rs 442.75.