Trump's victory helps the indian IT sector..!?

donald trump won the presidential election for the 2nd time by registering a great victory in the results of the US presidential election that the world was waiting for. While Trump's arrival is expected to bring many changes in the US and globally, the first move has reverberated in the indian IT sector. Shares of leading IT companies such as TCS, Infosys, and HCL have grown by more than 4 percent in the indian stock market due to Donald Trump's victory in the US election. Similarly, some leading IT mid-size IT company stocks have also registered higher growth.
 What is the reason for indian IT company stocks to rise sharply due to the victory of donald trump in the US presidential election..? First and foremost is the appreciation of the dollar. Ever since Donald Trump's election to power, the dollar has rallied and the rupee has continued to depreciate, recording historic lows. A rise in dollar value directly benefits indian IT companies, as indian IT companies do more business in the US and when the dollar appreciates, so do their revenue and profit metrics. While indian IT companies do most of their business in the US, they spend most of their time in India. This will increase the margin of profit to a large extent. Experts say that the policy decisions taken by the Trump-led administration are favorable for IT companies as they are expected to continue to strengthen the US dollar. But JM Financial, a leading brokerage firm, said it expects the trump regime to bring only sluggish growth to indian IT services companies. It is said that the decisions taken by US President donald trump, especially regarding visas, will determine the future of indian IT companies.
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Sowmiya Sriram

06/11/2024 06:50 PM