Nifty IT Gains as Rupee Breaches 90/$; Tech Stocks Rally Up to 2%

The Nifty IT index moved up nearly 1% on Wednesday, even as the broader market traded weak. Shares of major IT companies gained up to 2% after the Indian rupee crossed the 90-per-dollar mark for the first time, making the currency’s sharp fall the biggest trigger for today’s rally.

Large-cap names like TCS and Wipro rose around 2%, while Mphasis, Tech Mahindra, LTIMindtree, and Infosys also traded higher. As of 10:47 AM, Nifty IT was the only sectoral index in the green, up 0.57%, even though the Nifty 50 slipped 0.45%.

Why IT Stocks Are Rising?

The rupee hit a lifetime low of 90.28 per dollar, making exports more profitable for tech companies. Since most Indian IT firms earn a large share of revenue in US dollars, a weaker rupee increases their income when converted into Indian currency. Meanwhile, many of their costs, like salaries, remain rupee-based, improving their margins.

In the last month, Nifty IT has gained 6%, clearly outperforming the Nifty 50’s 0.6% rise. However, the index is still down 13% in 2025 so far.

Recent Rupee Movement

On Tuesday, the rupee had already touched 89.95 before closing at 89.87, falling nearly 0.4%. 

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Q2 FY26 Earnings Results: Margins Improve but Challenges Remain

In Q2FY26, IT companies reported better-than-expected EBIT margins, helped partly by rupee depreciation. Most firms beat margin estimates by 30–90 basis points.

Conclusion

The sharp fall in the rupee has given a much-needed boost to IT stocks, which benefit directly from currency depreciation. 

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