Shares of Infosys fell more than 2 percent on Tuesday, in line with other IT companies, on the back of stronger rupee.
Appreciating rupee hurts software exporters including domestic IT services firms as weakening dollar will translate into lower earnings for these firms.
Infosys shares traded at Rs 678.90, down by 2.23 percent on the NSE at 11 am. The stock touched an intra-day low of Rs 676.65. The largecap IT stock has been losing for the last two days and has fallen nearly 4 percent in the period.
Overall for the year, Infosys has returned more than 30 percent. In a span of a decade, the stock has given more than 350 percent returns to shareholders.
Nifty IT traded lower by 1.2 percent, dragged by Infosys, Tech Mahindra, Wipro, Tata Consultancy Services, while support came from Infibeam Avenues. The sectoral index weakened as the rupee gained against the US dollar.
The rupee opened higher at 71.33 against the US dollar on Tuesday. It had closed at 71.54 against the greenback on Monday. At 11.20 am, the rupee traded at 71.25 against the US dollar.
Meanwhile, the Nifty 50 traded lower by nearly 57 points, or 0.52 percent, at 10,831 at 11.12 am. The Sensex too traded weak by 186 points, or 0.51 percent, at 36,083.
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