IT Stocks Rally as Rupee Hits Fresh Record Low — Wipro, TCS, Infosys Jump Up to 2%

India’s IT stocks saw strong buying interest on December 3 as the rupee slipped to a fresh all-time low against the US dollar, crossing the ₹90 mark for the first time. The sharp depreciation of the domestic currency boosted sentiment for IT companies, which earn a major chunk of their revenue in US dollars. The rally helped the Nifty IT index outperform all sectoral indices.

At 11:35 am, the Nifty IT index rose nearly 1% to 37,885, emerging as the top sectoral gainer of the day.

Rupee Falls to a New Low, Crosses ₹90-Mark

The rupee opened at a fresh record low of 89.96 per dollar and further weakened to 90.25 by 12:15 pm on December 3. Currency experts attributed the fall to:

• Persistent equity outflows

• Uncertainty around the India–US trade deal

According to Amit Pabari, Managing Director at CR Forex Advisors, the USD/INR pair is likely to trade between 88.90 and 90.20 in the near term. He highlighted that the 88.80–89.00 level remains a strong support zone, and a break below 89 would signal the first signs of rupee strength.

The sustained depreciation kept markets cautious but simultaneously triggered optimism for export-oriented IT companies, which benefit directly from a weaker rupee since they bill most of their contracts in US dollars.

Why IT Stocks Are Rising?

A weaker rupee improves the operating margins of IT service providers because:

• Most revenue is generated in US dollars

• Dollar billing and onshore contracts become more profitable

• Currency headwinds turn into tailwinds for quarterly results

This currency boost, combined with improving earnings expectations, led to strong buying across the IT pack.

Brokerage firm Motilal Oswal, in its latest note, said it expects an earnings rebound in the IT sector, noting that:

• IT services are approaching an inflection point in the next 6–9 months

• Strong growth is expected in H2 FY27

• Full-scale enterprise deployment may pick up in FY28 as companies move from pilot stages to broader adoption

Motilal Oswal also upgraded its ratings on multiple IT stocks last week:

• Infosys: Upgraded to Buy from Neutral

• Mphasis: Upgraded to Buy from Neutral

• Zensar: Upgraded to Buy from Neutral

• Wipro: Raised to Neutral from Sell

The report indicated that Infosys could be a key beneficiary of rising enterprise-wide AI spending, a trend that continues to support investor confidence.

Also Read: Meesho IPO Retail Fully Subscribed in 1 Hour; Issue at 28%

Top Gainers in the Nifty IT Index

Several frontline IT stocks saw strong gains during the session:

1. Wipro – Top Gainer

• Rose over 2%

• Traded at ₹255.54 apiece

• Led the Nifty IT index

2. Tata Consultancy Services (TCS)

• Jumped nearly 2%

• Strong buying interest throughout the morning session

3. Infosys, Mphasis, Tech Mahindra

• Each gained around 1%

4. LTI Mindtree, Coforge, HCLTech

• Traded in the green with marginal gains

5. Persistent Systems

• The only major IT stock is trading lower

• Fell over 1%, bucking the sector-wide rally

The broader market, however, remained under pressure due to the falling rupee and continued selling in equities, but IT stocks provided significant support to the indices.

How does IT benefit from a Weak Rupee?

The rally in IT stocks highlights a direct relationship between currency weakness and IT sector performance. Key advantages include:

• Improved margins: Dollar revenues translate into higher rupee earnings

• Better competitiveness: Offshore billing becomes more profitable

• Stronger outlook: Companies gain a cushion against global demand uncertainty

Historically, the IT sector has acted as a defensive hedge during periods of rupee volatility, which explains the shift in investor sentiment today.

Market Background

The broader market sentiment has been impacted by:

• Persistent foreign institutional investor (FII) outflows

• Weakness in the domestic currency

• Uncertainty surrounding trade negotiations

While most sectors traded mixed or negative, the IT index stood out as the single bright spot amid market weakness.

Expert Commentary

Currency experts and brokerage houses highlighted the significance of the rupee movement:

• Amit Pabari emphasized the critical 89-level support zone and highlighted that a decisive move below this level would indicate rupee strength.

• Motilal Oswal pointed to a sectoral inflection point, expecting stronger growth momentum over the next few years as enterprises ramp up digital transformation and AI deployments.

These factors, combined with an attractive currency environment, helped IT stocks register strong gains.

Stocks That Moved the Most

Conclusion

With the rupee hitting a fresh historic low, IT stocks delivered a strong performance, lifting the Nifty IT index and injecting positive momentum into an otherwise subdued market. As the rupee remains under pressure, IT companies are expected to stay in focus, supported by improving earnings expectations and a favorable currency environment.

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