A maturing market amid the mayhem
Outsourcers slide on rising rupee
Shares in top IT firms plunged on concerns the rising rupee would squeeze margins in the export-driven sector.
IT bellwether Infosys dropped 2.5 percent, while Wipro and TCS fell 4.2 and 3.3 percent respectively.
TCS, which contributes 2.3 percent in the 30-Share Sensitive index, led the pack in terms of turnover, ending with volumes of nearly 14 million shares.
The BSE IT Index, which has gained nearly 100 percent so far this year, ended 2.7 percent lower in a broader market that closed 0.9 percent down at 16,806.
An increase in foreign inflows helped the partially convertible rupee gain 11.9 percent from its record low of 52.2 in early March.
The combined traded volumes on two exchanges (National Stock Exchange and MCX-SX) stood at about $2.7 billion.
Despite an appreciation in the rupee, the $60 billion outsourcing sector hopes to post healthy margins in the coming earnings season.
Infosys kicks off the results season on Friday and the focus will be on new guidelines to weather the global economic turmoil.
Do you think a stronger rupee will result in lower margins for the outsourcing sector?