Fall in Rupee helps software stocks rise

Select software stocks were islands of relative safety in a falling market on Friday as a weakening Rupee improved the prospects of these export-oriented companies. Infosys, Tech Mahindra and MindTree were top gainers.

The Rupee fell to a fresh 2-year low versus the Dollar as a global turmoil in currencies and stocks roiled Indian shores. A fall in the value of the Rupee helps software companies as a vast majority of their revenues are denominated in Dollars.

As a consequence, MindTree surged 3.4 percent to 1,424 rupees. Infosys gained 0.9 percent to 1148 rupees. Tech Mahindra was up 0.7 percent at 564 rupees and HCL Tech rose 0.8 percent to 970 rupees.

The Open Interest in these software futures gained 2.8 to 13.7 percent.

(Image credits: Indiatimes)