IT scrips slump to 3-month low

The rupee appreciation against the dollar took its toll on the information technology sector, with frontline and mid-cap IT stocks closing at a three-month low on the Bombay Stock Exchange (BSE) on Thursday.

Infosys Technologies and TCS closed at a three-month low, while Wipro dipped to a 52-week low. However, Satyam Computer held the fort and closed at a one-month low.

Among the second-line stocks, Tech Mahindra, i-flex Solutions, MindTree Consulting, Patni Computer Systems, Geometric Software and Polaris Software also closed at a three month-low. Hexaware Technologies (Rs 123.25) and Aztecsoft (Rs 71.60) ended in the red, closing at their 52-week low on the BSE.

The BSE IT Index was the biggest loser on Thursday, down 62.21 points at 4,649.11, declining to a 10-month low. In comparison, the Sensex, however, closed at 14,985.70 against its previous day close of 14,935.77, up 50 points.

The four blue-chip IT stocks, which are a part of the Sensex, declined in the range of 1 per cent to 3 per cent. Wipro fell 2.83 per cent to Rs 462.25 (Rs 475.70), TCS dropped by 1.83 per cent to Rs 1,095.35 (Rs 1,115.80), Infosys Technologies fell 1.55 per cent to Rs 1,899.60 (Rs 1,929.60) and Satyam Computer Services declined by 0.75 per cent to Rs 466.20 (Rs 469.70).

Among others, Polaris Software declined 4.25 per cent to close at Rs 112.25 against the previous day’s close of Rs 117.25 on the BSE. Mastek fell 3.89 per cent to Rs 272.80 (Rs 283.85), while Hexaware Technologies dropped 3.14 per cent to Rs 123.25 (Rs 127.25), i-flex Solutions fell 3.04 per cent to Rs 2,036.10 (Rs 2,099.94) and Tech Mahindra declined 1.75 per cent at Rs 1,276.50 (Rs 1,299.25) on Thursday.

During the first four months of the current calendar year, the IT index was the biggest loser among all sectoral indices of the BSE. While the IT index declined by 5.11 per cent, the Sensex rose by 14.64 per cent.

Meanwhile, the American Depository Receipts (ADR) of Infosys Technologies and Wipro hit a ten-month low on the overseas exchanges yesterday.

The Wipro ADR fell 4 per cent in last two trading days to $14.42 on the New York Stock Exchange (NYSE), while the Infosys Technologies ADR declined 3 per cent to $49.18 on the Nasdaq.

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