New Delhi: Shares of Infosys Ltd surged over 2% to touch a fresh record high on Thursday as the rupee weakened past the 69 mark for the first time to hit a record low against the US dollar. The rupee opened at 68.89 and hit an all time low of 69.09 a dollar—breaching the earlier low of 68.86 hit on 24 November 2016, following further spike in crude oil prices and concerns of higher inflation and widening current account deficit.
Infosys shares closed 1.01% higher at ₹ ,282 on BSE. In intraday trade, the stock rose as much as 2.28% to an all-time high of ₹ 1,298.20.
Other IT stocks trading higher include Wipro Ltd , up 0.55%, and HCL Technologies Ltd rising 0.52%. The Nifty IT Index was up 0.34%.
The US is a big market for Indian IT companies and a depreciation of the rupee helps boost their rupee earnings.
Shares of India’s biggest IT company TCS had hit a record high on Thursday. TCS shares were down 0.42% on Friday.
Overnight, global oil prices are near the highest level since 2014 after data showed US crude inventories fell by the most in almost two years and exports climbed to a record.
“Surge in Brent crude prices ensuring that the inflationary concerns are very much alive, “ said Edelweiss Financial in a report to its investors.
The rupee is the worst performing currency in Asia, plunging over 7.3% so far this year, followed by the Philippine peso and Indonesian rupiah—down 6.7% and 4.3%, respectively. The Chinese yuan has depreciated 1.6%.