The shares of Indian IT companies rose on Friday with the fifty-scrip Nifty climbing 1.6 per cent, after the rupee hit record low of 69.13 per US dollar.
The continuing fall of the rupee comes after the Chinese central bank weakened its daily reference rate for the yuan. The yuan fell to 6.7943 per dollar, its lowest level in a year amid a trade war between the United States and China.
The rupee’s last life-time low of 69.095 was touched on June 28.
The United States is the biggest market for Indian software services exporters.
While shares of Infosys Ltd rose 3.4 per cent, Tech Mahindra Ltd rose by 2.9 per cent. Tata Consultancy Services Ltd, the India’s biggest IT company by market capitalisation, roses 0.84 per cent, while HCL Technologies Ltd climbed 2 per cent. Wipro Ltd, which will report its June quarter results later in the day, rose 1.7 per cent.
Traders monitoring the domestic stock market are cautious of the Reserve Bank’s intervention to prevent a sharp fall in the currency.
A mad rush for dollar was witnessed as importers expected further erosion in the rupee value, forex dealers said.
The broader NSE index was up 0.1 percent. The benchmark BSE Sensex rose by 71.68 points, or 0.20 per cent, at 36,422.91 in early trade today.
News credit : Indiatoday