Rupee's downslide to help IT cos in 2-3 months: Nadar

Depreciating rupee means exporters get more rupee per US dollar

PTI | September 15, 2011



The rupee declining against the US dollar will help domestic IT companies in the next two-three months, HCL Chairman Shiv Nadar said today.

"It (the decline of rupee vs US dollar) is good for us.

The impact will depend on how the decline continues, but it is good for Indian IT firms," Nadar said on the sidelines of an event here.

The Indian currency slumped to its two-year low of 48.01 today in early trade at the Interbank Foreign Exchange (Forex) market before closing 47.64/65 against US currency.

Like exporters, IT companies earn majority of their revenue in dollars. Depreciating rupee means exporters get more rupee per US dollar.

However, most big IT firms also hedge against strong cross-currency fluctuations.

IT stocks have also rallied today.

Led by Infosys, IT stocks surged by up to 6 per cent on the BSE, after rupee declined further to 48-level against the US dollar. Infosys settled 5.78 per cent higher, while country's biggest software exporter TCS jumped 2.24 per cent.

"Depreciating rupee means a better earnings growth for the IT companies," Inventure Growth and Securities Head Equity Amit Chheda said.

Other IT companies such as Wipro climbed 4.34 per cent, HCL Tech surged 4.25 per cent and Mphasis rose by 1.94 per cent.

Led by gains in the bellwether stocks, the BSE IT index ended 4.27 per cent higher at 5,039.74.

Analysts said large IT companies benefit by weakness in the rupee as it helps in improving their profit margins.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter