Shares of information technology (IT) companies are in focus on Monday, with the Nifty IT index hitting new high after the Indian rupee slipped to a record low of 69.53 per dollar in the early trade on Monday. It has opened at 69.49 per dollar on today versus 68.83 Friday.
Nifty IT index, the largest gainer among sectoral indices, was up 0.80% at 14,797 at 09:36 am; as compared to 0.68% decline in the Nifty 50 index. The IT index hit a new high of 14,819 in intra-day trade today. The index surpassed its previous high of 14,776 recorded on July 16, 2018 in intra-day deal.
Tech Mahindra, Mindtree, Wipro, KPIT Technologies, HCL Technologies, Tata Elxsi, Infosys and Tata Consultancy Services were trading higher by up to 3% on the National Stock Exchange (NSE).
A cheaper rupee bodes well for Indian IT companies, as they derive a huge share of their revenues from exports.
Among individual stocks, Infosys hit a record high of Rs 1,400, up 1% on the NSE in early morning trade. The stock surpassed its previous high of Rs 1,392 touched on July 25, 2018 in intra-day trade.
In past one month, Infosys has outperformed the market by gaining 6% after the company announced its June quarter results and its board approved issuance of one free share for every share held (that is a 1:1 bonus issue). In comparison, the Nifty 50 index was up 3% during the same period. The company yet to announce the record date for bonus issue.