Rupee continues to rise against dollar, IT stocks down; HCL Tech, Wipro top losers

The rupee continued its rally against the US dollar on September 12, rising to one-month high of 71.27 against the dollar. The Indian currency had dropped to its year’s low of 72.40 last week.

A strong rupee pushed IT stocks in the red. The Nifty IT was down close to a percent in the afternoon session. Oracle Financial Services, which shed 2 percent, followed by Tata Consultancy Services, Wipro and Mindtree were among the top losers.

From the BSE IT space, 3i Infotech slumped more than 4 percent, followed by Genesys International down 4 percent and D-Link India down 2 percent. Other big losers included, L&T Infotech, Trigyn Tech and Zensar Technologies.

Global research firm CLSA has a buy call on HCL Tech, with target of Rs 1,380 per share due to rebounding organic growth and undemanding valuation with growth acceleration being driven by large-deal wins.

The global research firm has a sell call on Wipro, with target at Rs 220 per share. It said that even though digital growth was comparable, the overall growth rates was behind peers. The company’s weak Q2 guidance highlights its persistent execution challenges. The research firm expects Wipro to remain at the bottom of its peer growth range in FY21.

CLSA also has a buy call on TCS, with target of Rs 2,570 per share. It feels that deal wins and strong execution indicate a sustained growth recovery.

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