IT Stocks Snap Eight-Session Losing Streak As Nifty IT Jumps 3%
· Business · Economic Times, LiveMint
Shares of TCS, Wipro, and Coforge rebounded by up to 6% on Wednesday, snapping a massive eight-session losing streak across the domestic IT sector. The Nifty IT index climbed nearly 3% to cross 28,380 during morning trade, lifted by a strengthening US dollar and higher US bond yields. The Bloomberg Dollar Spot Index rose 1.9% in September to reach a two-month high following the Federal Reserve's focus on inflation. Indian IT companies derive a significant portion of their revenue from the US, meaning a stronger dollar increases rupee realizations for dollar-denominated earnings. Meanwhile, brokerages remain cautious on the sector ahead of the upcoming Q2 earnings season.
Why it matters
The currency shift directly boosts rupee-term revenues for Indian IT majors like TCS and Wipro, impacting investor sentiment as the Q2 earnings season approaches.
Read the original report — Economic Times
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