Friday 24 June 2016

Brexit may erupt currency fluctuations; IT biggies fall

According to latest media reports, the IT biggies are set to cut their spending in the short term.

With the Brits voting to exit the European Union, the Pound Sterling fell sharply against the US dollar to a 31-year’s low. Similarly, Indian rupee appreciated nearly 8% to 91.37 against the GBP. The Indian IT sector is of the view that Brexit is likely to bring more fluctuation in the forex market, but at the same time the software services providers are bracing up themselves to tap the currency disruptions for the short term.

According to latest media reports, the IT biggies are set to cut their spending in the short term.

Recently, Indian IT industry body Nasscom had said that it is bit difficult to measure the impact of Brexit, but in the short term it cannot be ignored at all. “There is also an immediate impact due to the currency, the GBP has already fallen by 8-10%," Sangeeta Gupta, senior vice president of Nasscom was quoted as saying by ET, adding it will be a phase of uncertainty and disillusionment.

India’s US$ 150 billion IT export industry has a sizable exposure to Europe.

Following the Brexit vote, IT majors fell sharply on BSE.

Infosys Ltd is currently trading at Rs. 1187.3, down by Rs. 24.25 or 2% from its previous closing of Rs. 1211.55 on the BSE. The scrip opened at Rs. 1199 and has touched a high and low of Rs. 1199 and Rs. 1159 respectively. So far 1669506(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 278286.33 crore.

Tata Consultancy Services Ltd is currently trading at Rs. 2545, down by Rs. 99.3 or 3.76% from its previous closing of Rs. 2644.3 on the BSE. The scrip opened at Rs. 2585 and has touched a high and low of Rs. 2592.1 and Rs. 2517.1 respectively. So far 873846(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 521040.26 crore.

Tech Mahindra Ltd is currently trading at Rs. 501, down by Rs. 31.05 or 5.84% from its previous closing of Rs. 532.05 on the BSE. The scrip opened at Rs. 514.95 and has touched a high and low of Rs. 516.95 and Rs. 493.95 respectively. So far 2069023(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 51651.78 crore.

Wipro Ltd is currently trading at Rs. 551.45, down by Rs. 12.1 or 2.15% from its previous closing of Rs. 563.55 on the BSE. The scrip opened at Rs. 553.55 and has touched a high and low of Rs. 555.25 and Rs. 547.9 respectively. So far 461341(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 139237.05 crore.

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