IT stocks led the gains on Dalal Street today after the Indian currency fell to a three-week low against the dollar. Rupee closed 71 paise lower at 73.38 against the US currency today. It opened at 72.81 to the dollar against previous close of 72.67.
The currency fell to a three-week low after the dollar climbed against its global peers amid rising bond yields. A fall in rupee is beneficial for the shares of IT firms as they earn a majority of their revenues in dollar.
The BSE IT index zoomed 907 points to end at 26,738 against previous close of 25,730. It touched an intra day high of 26,859. Top gainers on the index were HGS, Intellect, OFSS, Mphasis and MindTree rising up to 20%.
Shares of industry leaders Infosys, HCL Tech, Wipro and TCS ended over 3% higher each in trade today.
Similarly, Nifty IT index surged 736 points to 26,121. It touched an intra day high of 26,306.
After IT stocks, banking and consumer durables shares were among the top gainers with BSE bankex rising 565 points to 38,093 and BSE consumer durables index climbing 668 points to 32,583.
Bank Nifty surged 556 points to 33,875. All 19 BSE sectoral indices ended in the red.
Meanwhile, Sensex ended 1,128 points higher at 50,136 and Nifty zoomed 337 points to 14,845. Top Sensex gainers were HDFC Bank, HCL Tech, Infosys and NTPC rising up to 4.11%.
Vinod Nair, Head of Research at Geojit Financial Services said, "Beating worries of increasing covid cases and rising bond yields, the domestic market sparked a rally today as investors turned their focus to economic recovery supported by vaccination drives. Positive openings seen in Asian and European markets also helped in boosting optimism in the Indian market. Barring realty, all sectorial indices joined the rally with IT and pharma contributing the most."