More Stories

Informist, Thursday, Oct 31, 2024

MUMBAI - Caution ahead of the US presidential election next week is expected to keep shares of Indian information technology companies in the red, analysts said. Most domestic IT companies have major exposure to the US, with about 60% of revenue earned from clients in the world's largest economy, analysts said. Any drastic change in the economic as well as political scenario in the US could led to challenges for technology majors in India, they said. 

On Friday, India's stock exchange will hold a Diwali Muhurat trading session. The pre-open session will start at 1745 IST and the special live trading session will begin at 1800 IST and end at 1900 IST. The US 60th presidential elections will be held on Tuesday. The debate continues on who will become the next president of the US--Democratic Party's Kamala Harris as the first female president or a second term for Republican Party candidate Donald Trump.

Emkay Global Financial Services expects some fiscal thrust in the form of tax cuts from the Republican candidate, whereas Democrats would lead with more spending. "A full Trump sweep would likely be the most equity-positive outcome with a favourable corporate tax regime alongside low regulatory burden, while any gridlock is technically equity market-negative," it said in its report. 

Thursday, IT stocks were the major laggards, mirroring the weakness in their US counterparts. The Nifty IT index closed 3% lower at 40407.55 points. 

Shares of US-based Microsoft were down 3.6% and those of Meta Platforms were down 3.1%. However, Alphabet Inc. shares were up 2.8% after the Google-parent beat estimates for revenue and profit for the third quarter. Nuvama Institutional Equities said strong sales growth in Alphabet cloud business bodes well for Indian information technology companies. A pickup in cloud spending going forward will revive discretionary spending in IT services in the remaining part of this year or 2025-26 (Apr-Mar). Alphabet's Jul-Sept consolidated revenue increased 16% in constant currency as compared with the same period last year. Its net income rose 34% on year to $26.3 billion. 

TOP HEADLINES
* Infosys arm EdgeVerve launches Finacle data, AI suite for banks' digital ops
* Wipro collaborates with Microsoft, SAP for RISE with SAP cloud migrations
* TCS, Insper in pact to develop solutions, invest R$ 50 mln in South America
* Most cos lack foundation for enterprise AI adoption - Infosys research
* TCS in 15-yr pact for workers' automatic enrolment in Ireland pension scheme
* HCLFoundation signs MoU with UP govt agency to promote green projects
* India, Germany sign MoUs in critical, emerging technologies, innovation

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anjana Therese Antony
Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.