Mumbai: Shares of information technology companies, including Tata Consultancy Services Ltd and Infosys Ltd, gained on Wednesday as the Indian rupee weakened to a 19-month low against the US dollar. NSE’s Nifty IT Index gained 1.11% at 10.57 am. The Nifty 50Index was down 0.20%.
The rupee opened at 68.42 a dollar and touched a low of 68.50—a level last seen on 1 December 2016, as traders were worried that rising crude oil prices could accelerate fiscal deficit and inflation. Year to date, the rupee weakened nearly 7%.
TCS shares of rose as much as 1.80% to a record high of ₹ 1,886.20. The stock up 37.12% gains this year as of Tuesday’s close and is the biggest pct gainer among NSE Index shares. Infosys shares advanced as much as 1.25% to hit its an all time high of ₹ 1,293.90. Tech Mahindra rose 2.78%, HCL Technologies rose 1.25% and Wipro gained 0.3%.
Oil prices jumped on Tuesday as the US pressed its allies to end all imports of Iranian oil by a November deadline and said it didn’t want to offer any extensions.
Moreover, the continued selling by foreign investors in local equity and debt market also dampened sentiment. Foreign investors have so far this year sold nearly a combined of $7 billion in equity and debt markets, respectively.
Traders were cautious due to the escalating global trade tensions between US and other major economies, progress of monsoon and movement of crude oil prices.