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IT stocks erase early gains amid weak rupee

As the rupee was trading near its 20 week low level of 67.71 against the dollar, the Nifty IT index rose 2.50 per cent in afternoon trade.

BT Online        Last Updated: November 16, 2016  | 16:35 IST
IT stocks erase early gains amid weak rupee

IT stocks rallied on the back of a weak rupee on Wednesday.

As the rupee hit its 20-week low level of 67.71 against the dollar, the Nifty IT index rose 2.50 per cent in afternoon trading.

The index later erased gains and ended 1.62 per cent higher. While, the Tech Mahindra stock rose 3.24 percent, TCS rose almost 3.13 per cent to Rs 2,187  level on the Nifty.

MindTree, Infosys, KPIT rose 1.50 percent, 1.28 percent and 1.82 percent, respectively on the NSE.

IT sector firms earn a large part of their revenue in dollars. If rupee falls, every dollar earned through exports means more revenue is added to the bottomline.

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