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IT stocks gained on Monday after rupee fell nearly one per cent to an intraday low of 67.70 against the US dollar.
HCL Tech was up as much as 4 per cent to be the top gainer in the Nifty50 index, while Tech Mahindra, TCS and Infosys were all up over 1.5 per cent each. Three out of the top three gainers in Nifty were IT stocks.
Analysts say fall in rupee will help IT companies report better revenues in rupee terms. Frontline IT outsourcers earn most of their revenues in dollars.
Meanwhile, shares of HCL Tech also got a boost after the Noida-based company said that it has signed a strategic IT partnership contract with Dutch-based LeasePlan, a global fleet management and driver mobility company.
Traders also cited the underperformance of IT stocks in last one month as one of the reason behind the buying in IT stocks today. In last one month till Friday, the IT sub-index of National Stock Exchange gained nearly 1.5 per cent compared to 3.5 per cent gain in the broader Nifty.
HCL Tech shares closed 2.26 per cent higher at Rs 770.65, while TCS, Tech Mahindra and Infosys shares ended 1.5-2.5 per cent higher each. In comparison the broader Nifty closed 0.84 per cent higher.