IT scrips surge as Rupee blinks

Mumbai, June 5 (UNI) Information Technology (IT) pivotals extended early gains today at the premier Bombay Stock Exchange (BSE), on fresh buying after the rupee backed away from last week's nine-year high as traders bought dollars amid concerns that the Reserve Bank of India (RBI) may intervene aggressively to check the Indian currency's rise.

TCS shot up by 0.10 per cent to Rs 1,210, Infosys Technologies was up by 1.33 per cent to Rs 1,942 and Wipro rose by 0.27 per cent to Rs 535.40.

Meanwhile, I-flex solutions jumped by 10.5 per cent to Rs 2,431 on expectations among market analysts that majority stake-holder Oracle Corp may make an open offer to increase its stake in the Indian banking software maker.

It may be recollected here that the IT stock has not performed in the market's recent surge due to a strengthening rupee.

A rise in the rupee directly impacts the revenues and profits of IT firms, which derive a lion's share of their revenue from exports to the US, market analysts explained and added that the rupee has gained about 9 per cent this calendar year.

UNI