At 11:15 IST, the BSE IT index was down 3.72% at 2,320.88. It, however, outperformed the Sensex, which fell 4.35% at 8,392.36.Infosys Technologies, Wipro, TCS, and Satyam Computer fell 3.90% to 6.34%.Indian software firms earn more than half of their revenue from exports to the United States. The US Federal Reserve officials on Wednesday, 19 November 2008, pared their outlook for growth in the world's biggest economy to minimal levels.
The weaker forecast came on a day in which data showed US consumer prices in October 2008 posted their biggest drop since monthly records began in 1947, while new-home buildings slumped to fresh lows. Indian software firms earn more than half of their revenue in dollar terms from the US market.
A weaker rupee failed to lift sentiments for the IT stocks. The rupee opened at a record low of 50.50 per dollar today, 20 November 2008, as a sharp fall in Asian share prices raised worries of foreigners selling local equity holdings. A weaker rupee augurs well for the sector as IT firms earn most of their revenues from.
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