Nifty IT index ends 7-day losing streak
What's the story
Ending its seven-day losing streak, the Nifty IT index witnessed a major turnaround today.
The index surged by nearly 177 points to settle at 41,249.55 points.
The turnaround was largely led by a rally in IT stocks as the Indian Rupee opened 5p lower against the US Dollar, threatening to breach the ₹87 mark again.
Market dynamics
IT, pharma stocks benefit from stronger US Dollar
The strengthening of the US Dollar against the Indian Rupee has potential benefits for exporters whose earnings are in Dollar.
This includes sectors such as IT services, pharmaceutical companies, and textile businesses.
Despite the fall in the Indian Rupee, this dynamic can lead to a positive impact on their stock prices.
Stock performance
LTI Mindtree leads gains
LTI Mindtree was the biggest gainer on the Nifty IT index, with its shares climbing by as much as 2.41% to trade at ₹5,605 apiece.
It was followed closely by Persistent Systems and L&T Technology Services (LTTS), whose shares climbed 1.47% and 1.46%, respectively.
Other shares that witnessed minor gains included Tech Mahindra, Wipro, and Infosys.
Market outliers
Some IT stocks buck the positive trend
Despite the overall positive momentum in the Nifty IT index, a few stocks went against the trend. TCS and Mphasis shares witnessed minor losses, while Coforge stocks fell by over 1%.
The rise in share prices of heavyweights like LTI Mindtree and Infosys helped lift the index, but falls in Coforge and TCS share prices weighed it down.