A maturing market amid the mayhem
BSE IT index fall on rupee appreciation
The BSE IT Index continued its downtrend from yesterdays trade and ended nearly 1 percent lower on Tuesday.
Outsourcers that get most of their revenue from exports were weighed down by the rupee that strengthened to 19-month-high against the dollar on Monday and looked to climb further, which could squeeze profit margins of the companies.
The decline was mainly led by outsourcer major such as Tata Consultancy Services was down 0.98 percent and rivals Infosys Technologies and Wipro dropped 0.8 percent respectively.
Other stocks includes HCL Technologies down 3.7 pct, NIIT down 2.2 pct and Patni Computer System drops 1.5 pct
The BSE IT index has gained over 2 percent so far in the year.
Do you think appreciating rupee would lead to further downfall in the index?