Tata Consultancy Services (TCS) and Infosys share prices rallied up to 2 per cent to hit their respective lifetime highs after rupee slipped to its weakest in more than 18 months, hit by higher oil prices and trade war concerns that could trigger another bout of FII outflows.

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TCS rallied 1.8 per cent to hit its fresh high of Rs 1886.20, while Infosys added 1.25 per cent to Rs 1293.90, its all-time high level. Investors, however, booked profits in the stocks with Infosys and TCS share prices settling flat.

The Nifty IT index ended at 14,018.40, up 0.5 per cent, led by gains in Tech Mahindra, HCL Tech, KPIT and Mindtree.

A weaker rupee bodes well for Indian IT companies, as they earn a huge share of their revenues from exports.

The rupee fell to 68.68 to the dollar on Wednesday, its lowest since November 29, 2016. On a year-to-date basis, the rupee weakened nearly 7 per cent.

Experts believe that high oil prices will stoke inflation and widen the country's current account deficit, adding to more selling pressure on the fragile rupee that risks destabilising the broader economy. 

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The rupee opened at 68.42 a dollar and touched a low of 68.50—a level last seen on 1 December 2016, as traders were worried that rising crude oil prices could accelerate fiscal deficit and inflation. Year to date, the rupee weakened nearly 7%.

Oil prices rose on Wednesday on a supply disruption in Canada, falling US crude stocks, uncertainty over Libyan exports and after US officials told importers to stop buying Iranian crude from November.

Brent crude was up 30 cents a barrel at $76.61, while US light crude was 25 cents higher at $70.78.