Mumbai: The Bombay Stock Exchange’s sensitive Index fell, reversing a two-day rally. Infosys Technologies Ltd. led software exporters lower after the rupee climbed to a nine-year high against the dollar, potentially crimping export earnings.
“The strengthening rupee has become a matter of concern for exporters,” said Soumendra Nath Lahiri, who helps manage about $3.9 billion in stocks at DSP Merrill Lynch Investment Management in Mumbai. “Earnings will be hurt if the rupee continues to gain.”
The slid 88.54, or 0.7%, to 13,607.04. The index climbed 4.4% over the past two days. The Sand P/CNX Nifty Index on the National Stock Exchange fell 28.40, or 0.7 %, to 3984.95.
Infosys, the nation’s second-largest software exporter, fell Rs46.6, or 2.2%, to 2,081.7. Satyam Computer Services Ltd., India’s fourth-biggest computer-services exporter, dropped Rs23.45, or 4.9%, to 455.9. Wipro Ltd., India’s third-largest software exporter, declined Rs12.4, or 2.1% , to 574.2. Both Satyam and Wipro will report earnings on April 20.
The US accounts for about 60% of sales of Indian software companies.
India’s rupee reached 41.6450 against the dollar, the strongest since June 1, 1998, and traded at 41.6950 as of 12:53 pm in Mumbai, according to data compiled by the news agaency.