There is virtually a rout on the emerging markets currencies, following the crisis in Turkey. Today morning, the rupee fell to its life-time low of 69.62, tumbling by 79 paise against the greenback. In times of such geopolitical tensions, we usually see heavy buying of the American dollar by banks and importers as dollar always proves to be the safe haven and continues to remain so, despite Trump.
And in India, when the rupee falls, IT companies cheer as lion’s share of their earning comes from US dollar. Thus when the dollar gains, they gain.
Infosys and TCS are in the green but we are seeing more gains in the midcap and smallcap IT sector led by companies like Intense Technologies, Infinite Computers, FSL, Hexaware, Tech Mahindra, Mindtree, Sonata Software, Majesco and Cyient. The BSE IT Index is in the green with ‘advances’ outnumbering ‘declines.’