Market value of IT companies gain in August Re tumbles
Aug 25 2013 , New Delhi
Tech Mahindra witnessed a surge of nearly 10 per cent in its shares so far this month, the most among the BSE IT companies.
Hexaware Tech's market value stood at Rs 3,607 crore against Rs 3,416 crore at the start of the month, registering a gain of 5.6 per cent.
Similarly, the market cap of Wipro jumped 2.81 per cent from Rs 1,07,484 crore to Rs 1,10,506 crore.
Among others, the value of Infosys climbed 0.76 per cent, and the m-cap of TCS rose by 0.71 per cent.
The valuation of HCL Tech went up by 1.85 per cent from Rs 64,770 crore to Rs 65,969 crore, while that of Mindtree gained 3.61 per cent from Rs 4,008 crore to Rs 4,153 crore.
Fall in the rupee vis-a-vis the US currency is broadly seen as positive for export-focused sectors like the Indian IT space as a stronger dollar boosts sales of software firms in rupee terms.
Market experts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.
Big IT companies earn a major chunk of their revenues in dollar from their US clients.
"Falling rupee is good for Indian IT companies and revival in the US is also another factor that is helping software exporters. Falling rupee is one catalyst in the growth of IT stocks at the same time green shoots in the US are encouraging," said Alex Matthews, Research Head, Geojit BNP Paribas.
Although the rupee recovered on Friday after touching a life-time intra-day low of 65.56 on Thursday, it continued its downslide for the second straight week to end down by another 155 paise at 63.20.
The rupee has declined almost 4.6 per cent so far this month.