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Tech stocks ride high on lower rupee in 2018

Jan 7, 2019 by The Passage Team
Tech stocks ride high on lower rupee in 2018

In the year gone by, the BSE IT index gained 25%, outpacing the benchmark Sensex’s 5.9% gain. This makes 2018 the best year for the BSE IT index since 2013.

Boosted by a weak rupee, technology stocks outpaced benchmark indices in 2018. As Indian IT (information technology) companies earn mostly in dollars, a weak rupee meant higher revenue. The rupee weakened 8.46% against the dollar in 2018, touching a record low of 74.48 to the dollar in October. Among IT stocks, Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Tech Mahindra Ltd and Wipro Ltd were up 5-43% in 2018.

However, analysts believe the rate of growth for IT companies is unlikely to quicken in 2019 due to slow economic growth across the US and Europe, Brexit-related uncertainty in the UK, soft PMI/confidence indicators in Germany and the UK, and weak client financials.

Source: Livemint

The Passage Team

The Passage is committed to creating in-depth content over technology industry across Asia with a focus on emerging startups in the technology, healthcare, education, food, tech, travel & mobility segments.

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