IT scrips decline over strenghthening Rupee

Mumbai, June 12 (UNI) Information Technology (IT) pivotals that had declined after a rally in the past few sessions triggered by the weakening of the Rupee against the US Dollar, today witnessed renewed selling as the Rupee started firming up once again.

Satyam Computers tanked by 3.67 per cent to Rs 479, Wipro slipped by 0.63 per cent to Rs 539 and TCS was down by 0.48 per cent to Rs 1215.

However Infosys rose by 0.25 per cent to Rs 1,985 after its ADR surged by 3.90 per cent to USD 51.66 overnight on Nasdaq, market analysts tracking the IT sector explained.

In early trade today, the Rupee was at 40.7600/7700 per US Dollar, moving up from 40.79/80 yesterday, heading back towards a recent nine-year peak of 40.28. The Rupee's rise was attributed to increased foreign fund inflow to subscribe to the mega initial public offering (IPO) of India's biggest realty entity DLF. The issue opened yesterday and is slated to close on Thursday, this week.

A strengthening Rupee hits the software majors who derive the major part of their profits from US clients, analysts pointed out.

UNI