More Stories

Informist, Friday, Nov. 8, 2024

MUMBAI - Shares of information technology companies in India may follow the trend in the US market, particularly in the absence of major triggers on the domestic front. They will also look for possible policies that Donald Trump, the winner of the 47th US presidential election, may bring in once he takes charge in January. Domestic IT companies have major exposure to the US, with some of their revenue from clients in the world's largest economy constituting around 60%. 

Earlier, there were concerns about changes in immigration policies once Donald Trump takes over the White House. Some analysts said if Trump tightens policies on H-1B and L-1 visas in the US, it could negatively impact employees of domestic IT companies who reside in the country under such visas. H-1B and L-1 visas are non-immigrant visas that allow foreign professionals to work in the US. 

Trump had earlier imposed stringent regulations on these visas, which had then impacted some Indian IT companies, analysts said. However, a few others said this may not have a major impact on IT players this time, especially IT services. In Trump's presidency during 2017-2021, the tech-heavy Nasdaq Composite grew 140%, much higher than the 40% rise seen during Joe Biden's term since 2021. 

For more than a year, Indian IT companies have felt the heat of a weak macroeconomic environment in the US, such as higher interest rates, sharp cut down in discretionary spending, and weak demand trends. However, the September quarter earnings showed some signs of recovery in demand and positive comments for 2025-26 (Apr-Mar). Some large-cap companies raised their revenue growth guidance for FY25 during the quarter, just like their US-based peer, Accenture. 

Adding to the cheer was the 25-basis-point cut in interest rates by the US Federal Reserve in its November meeting to 4.50-4.75%. The Fed had surprised global investors with a 50-bps reduction in the federal funds rate at its meeting in September. Friday, the Nifty IT index closed higher this week, snapping a three-week losing run. It ended 0.7% higher at 42050.15 points, with most constituents in the green. 

TOP HEADLINES
* Latent View Jul-Sept consol PAT rises 2.5% QoQ to INR 398.86 million
* Wipro, Google Cloud tie up to identify generative AI use case for businesses
* HCL Tech gets order from New Zealand's Tasman District Council for tech svcs
* TCS signs multi-year deal to modernise airline Air France-KLM's operations
* Wipro partners with RELEX Solutions to optimise retail operations
* eClerx Services Jul-Sept consol PAT rises 25.7% QoQ to INR 1.4 billion
* Infosys teams up with UK's Southwark Council for digital learning platform
* HCL Tech to start new artificial intelligence lab in Singapore

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 Deepshikha Bhardwaj

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.