At 10:53 IST, the BSE IT index was down 0.32% at 5,286.55. It underperformed the Sensex, which was up 0.24% at 17,984.12.
The BSE IT index had underperformed the market over the past one month till 6 April 2010, gaining 1.43% compared with the Sensex’s 5.57% rise. It underperformed the market in past one quarter, rising 2.57% as against 1.36% rise in the Sensex.
Oracle Financial Services Software (down 1.25%), HCL Technologies (down 0.86%), Patni Computer (down 0.66%), Infosys Technologies (down 0.43%), MphasiS (down 0.38%), Wipro (down 0.35%) and TCS (down 0.27%), declined.
Reports suggested that the unfavourable currency movement is also likely to shave off 30-90 basis points from the operating margins of IT outsourcers. A firm rupee affects operating margins of IT firms negatively as IT companies derive a lion’s share of revenue from exports.
The rupee was trading firm today, 7 April 2010, but off a 19-month-high. At 10:25 IST, the partially convertible rupee was at 44.37/38 per dollar after hitting 44.31, its strongest since 8 September 2008. It had ended at 44.45/46 on Tuesday, 6 April 2010.
Source:http://www.bloombergutv.com/stock-market/stocks/commentary/385168/firm-rupee-weighs-on-it-stocks.html
