Amid sea of red all across, the IT stocks such as Infosys, TCS and Wipro stood taller with IT index being the only sectoral gainer in trade on Monday.
Stocks of Infosys, TCS, Wipro, HCL Tech and Tech Mahindra added up to 2 per cent intraday on the BSE. The BSE IT index gained 0.87 per cent.
Experts believe IT counters bucked the trend as these stocks had already taken a beating last week post profit warning by TCS.
"IT stocks outpeformed in today's weaker market trend as sector sepcific negative cues have already been priced in. Had they not fallen last week, they would have also particpated in the broader market fall," said Ankur Varman of SBICAP Securities.
To recall, the management of country's largest software services firm TCS last week said the company may face sequential loss of momentum in the coming quarters.
"The company has characterized customer outlook as one marked by abundant caution", said TCS, adding that clients are holding back discretionary spending.
Meanwhile, the sharp depreciation in rupee also supported the gains in IT stocks.
Extending losses for the third stragight day, the rupee on Monday weakened by 25 paise to 66.93 against the dollar.
Forex dealers said apart from sustained demand for the American currency from importers, foreign fund outflows and dollar's gains against other currencies overseas, also weighed on the rupee.
IT companies earn most of their revenues in dollars. With fall in rupee, each dollar earned abroad gets them more rupees.