Shares in technology led stocks fell today after the rupee traded almost flat. Tata Consultancy Services was down 1.67 per cent at Rs 1707, while Wipro was down 1 per cent and Infosys lost 2 per cent at Rs 2905.

Dealers say that a recovery in the rupee on the recent RBI measures to cool the bond markets may have led to the declines. Also, most of the IT stocks have recently touched their 52-week highs and valuations are now beginning to look expensive.

It's also possible that there may have been some churning from the IT sectors to sectors where valuations have turned attractive like the banking sector.

IT stocks have rallied ever since Infosys declared its results on hopes that a recovery in the US would boost demand and hence earnings. A simultaneous fall in the rupee is expected to boost earnings for these companies.

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