Mumbai: On a day when there was a blood bath on Dalal Street, the shares of IT companies such as Persistent Systems, Wipro, LTIMindtree, Coforge and HCLTech appreciated on Monday. Almost all the sectors were in the Red in the Monday trade, however, IT stocks outperformed the market sentiments.
Persistent Systems shares settled in positive territory at Rs 4,782, Wiprio closed at Rs 198.60 with 1.64 per cent gains, LTI Mindtree counter settled with marginal appreciation at Rs 4,301, Coforge stock ended at Rs 1,167.90, and HCLTech ended with gains at Rs 1,362.40. The IT giants such as Tata Consultancy Services ended lower at Rs 2,527.80 and Infosys share price gained to finish the day at Rs 1316.
TCS traded slightly lower, however, the losses were far less severe than those recorded in the broader market. The resilience comes after the Rupee dropped to its all-time closing low of 92.35 (provisional) against the US dollar on Monday, losing 53 paise during the session.
IT Sector Resilience: How IT stocks outperformed
Notably, a declining Rupee is considered positive for Indian IT companies because most of their revenue is generated from foreign currencies, primarily US dollars. A large portion of these companies is denominated in rupees.
Also, of late, the IT stock were badly hit and are considered to be oversold. The Nifty IT index recorded a drop of 20% in February. It was the biggest decline since the global financial crisis in 2008.
The Stock Market benchmark indices – BSE Sensex and NSE Nifty tanked nearly 2 per cent on surging crude oil prices and West Asia turmoil. The BSE Sensex plummeted 1,352.74 points to close at 77,566.16 on March 9, while the NSE Nifty plunged 422.40 points to finish at 24,028.05.
The Stock Market recorded a fall due to surging crude oil prices and weak global trends due to the worsening situation emanating out of the US-Israel and Iran war.
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