Strong rupee weighs; will it be a merry Dec for Nifty IT again?

The Nifty IT Index has been the best sector performer so far this year gaining 17 per cent largely backed by the depreciating rupee against the greenback. However, last week saw some reversal with the technology stocks giving up some of their gains amid the rupee touching an 11-week high. Brent’s correction of 30 per cent from its recent peak has set a stronger tone for the Indian currency, said Madhu Babu, analyst at Prabhudas Lilladher. Steep volatility and appreciation in the Indian unit has led to the correction in IT stocks, he added.