Why IT shares are falling despite rupee hitting record lows
Shares of IT firms have lost ground despite the rupee slipping in the last five sessions. Usually, rupee and IT stocks share an inverse relationship. When rupee falls, IT sector stocks rise on prospects of increased earnings since most of them deal in outsourcing of business from overseas clients and earn in dollars. On the other hand, when rupee rises, IT shares fall. However, this time, the fall in rupee has been accompanied by a decline in IT stocks. The rupee, which closed at 79.25 to the dollar on July 8 has fallen to 79.92 today, losing 67 paise during the period amid a stronger greenbac...
Source: businesstoday.in