Shares of IT firms have lost ground despite the rupee slipping in the last five sessions. Usually, rupee and IT stocks share an inverse relationship. When rupee falls, IT sector stocks rise on prospects of increased earnings since most of them deal in outsourcing of business from overseas clients and earn in dollars. On the other hand, when rupee rises, IT shares fall.
However, this time, the fall in rupee has been accompanied by a decline in IT stocks.
The rupee, which closed at 79.25 to the dollar on July 8 has fallen to 79.92 today, losing 67 paise during the period amid a stronger greenback in the overseas market. An expected fall in the current account deficit and FIIs outflows have also led to weakening of sentiment around the local currency.
Sensex falls 86 points to 54,395 and Nifty closes 4 points lower at 16,216. Indian market gained for the third consecutive session on Friday amid mixed global cues.
The first half of the year saw lukewarm market performance because of global headwinds. The second half, too, is unlikely to provide much relief to investors - Issue Date: Jul 24, 2022
Sensex falls 86 points to 54,395 and Nifty closes 4 points lower at 16,216. Indian market gained for the third consecutive session on Friday amid mixed global cues.
Shares of ITC hit a fresh 52 week high amid market rally today. ITC stock touched an intraday high of Rs 294.45 against the previous close of Rs 291.80 on BSE. ITC stock was trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. It closed 0.39 per cent higher at Rs 292.95 on BSE.