Most IT stocks saw solid gains in morning trade on Tuesday, 13 October, with stocks such as TCS, HCL Tech, Wipro, Tech Mahindra, and Infosys, jumping up to 5%, driving the sectoral index Nifty IT higher by 3%.
Stocks such as Mphasis, LTM, Coforge, Persistent Systems, and Oracle Financial Services Software (OFSS) gained more than 1% each.
Around 9:35 AM, the Nifty IT index was 2.20% up with all components in the green. Equity benchmark Nifty 50 was about 0.60% up at 22,491 at that time.
Why are IT stocks rising today?
A confluence of factors, including better-than-expected Q2 results of TCS and HCL Tech, a slowdown in AI trade, and the dollar’s rise against the rupee, is driving the IT stocks higher.
The dollar index, which measures the greenback’s strength against a basket of six currencies, hovered near its 18-month high of 102.6, boosting Indian IT stocks.
Many Indian IT companies earn a significant portion of their revenue in US dollars. So the dollar’s rise improves their topline.
(This is a developing story. Please check back for fresh updates.)
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