Medium impact
IT is the only sector to fall as TCS, HCLTech and Infosys slip
Indian IT companies earn much of their revenue from American banks, retailers and technology firms. On Wednesday the Nifty IT index fell 1.50% while every other major sector rose. TCS fell 2.52%, HCLTech 2.37% and Infosys 1.73%. Market reports pointed to uncertainty about US technology spending after the elections and to profit-taking after a recent recovery. A stronger rupee also slightly reduces what dollar revenue is worth in rupees.
The chain of consequences
- 1US election results raise questions about tech spending
- 2Investors book profits in IT
- 3Nifty IT falls 1.50%
- 4TCS, HCLTech and Infosys among top Nifty losers
Tends to gain
Little; money moved into domestic-focused sectors such as metals, realty and consumer goods.
Tends to lose
Indian software exporters, which earn mostly in dollars from US clients.
If it reverses
Signs of steady US client budgets or a weaker rupee would support IT earnings.
Other stories today
- Brent crude falls 8.7% to $94.62 after the US midterm results
- Foreign investors buy about ₹7,284 crore of Indian shares
- Defence shares extend their rally after GRSE's ₹32,000 crore Navy order
- Apollo Hospitals' September-quarter profit rises 32%
- NHPC reports higher September-quarter revenue
- Coal India shares adjust for its ₹10.25 dividend
- US data stay steady ahead of Friday's jobs report
- Diwali week: Muhurat session on Sunday, markets shut on Tuesday