IT stocks fell up to eight per cent as the rupee jumped by another 32 paise to trade at a fresh 11-month high of 58.47 against the US dollar in early trade today.
Shares of Tata Consultancy Services (TCS), the country's most valued firm, fell six per cent to Rs 2,026 on the BSE.
Extending its rising streak for the fourth straight session, the rupee today jumped 32 paise to trade at a fresh 11-month high of 58.47 against the US dollar in early trade on sustained foreign capital inflows after the BJP-led NDA swept the Lok Sabha elections.
Market experts expect that export driven stocks may remain flat as the rupee strengthens.
Big IT companies earn a major chunk of their revenue in dollars from their US clients and benefit from a weaker rupee as it positively impacts their profit margins.