CNX IT index up 4 %, supported by rupee depreciation

All the listed Indian IT stocks are flavour of the day as they rose by close to 4 % in early trade on Friday, November 25, 2016. Dollar/rupee pair was trading at Rs 68.46.

Indian IT stocks are the direct beneficiary of the depreciation of the domestic currency as it helps in increasing the company’s dollar revenue income. USD has been appreciating for the major part of the month since the US Presidential election got over, which helped the USD appreciate against all the major currencies and more so against emerging markets' currency.

All the IT stocks have been under tremendous pressure since the past two quarters since BREXIT. Companies have also seen their respective earnings deteriorate over the same period. Most of the IT firms have trimmed down their guidance in terms of revenue growth, margins, etc.

USD has been appreciating against the major currencies as US Fed is expected to increase interest rates for the second time in almost a decade as the US economy continues to grow on a strong footing.

Biggest Gainers: -

Tech Mahindra- 3.6 %

Infosys- 3.35 %

HCL Tech- 3.2 %

Oracle Financial Services- 3.01 %

Mindtree- 2.2 %