Shares of major Indian IT firms, including Tata Consultancy Services Ltd (TCS), Infosys Ltd, HCL Technologies Ltd, and Tech Mahindra Ltd, were among the top gainers on the Sensex as the 30-stock index crossed the 80,000 mark in Wednesday’s trade. This rally comes amid reports that Donald Trump was ahead of Kamala Harris in swing states, with an overall lead of 230 electoral votes to Harris’ 205.
| Company Name | High | Low | Last Price | % Chg | Value (Rs. Cr.) | |
|---|---|---|---|---|---|---|
| Infosys | 1,817.90 | 1,762.65 | 1,814.20 | 3.42 | 938.65 | |
| TCS | 4,121.00 | 3,975.25 | 4,106.15 | 3.39 | 792.07 | |
| Coforge Ltd. | 7,808.90 | 7,602.10 | 7,799.00 | 3.35 | 355.31 | |
| HCL Tech | 1,841.95 | 1,783.00 | 1,832.75 | 3.34 | 337.90 | |
| Wipro | 563.45 | 541.00 | 559.00 | 2.81 | 297.01 | |
| Tech Mahindra | 1,687.90 | 1,635.00 | 1,682.25 | 3.04 | 296.70 | |
| Mphasis | 2,939.60 | 2,877.00 | 2,898.95 | 1.44 | 292.91 | |
| Persistent | 5,700.00 | 5,443.15 | 5,692.35 | 5.02 | 251.19 | |
| LTIMindtree |
|
5761 | 5938.65 | 3.83 | 140.62 |
“The early results show Donald Trump leading in the electoral race (95-35), although a candidate needs at least 270 votes to secure victory. Trump’s lead suggests potential for increased U.S. spending, which may keep inflation elevated. It could also mean a stronger dollar but potentially more trade barriers. However, a clear result—regardless of the winner—would bring relief to markets that have been volatile in anticipation of the outcome,” noted Anitha Rangan, Economist at Equirus.
Historically, during Trump’s first term from January 2017 to January 2021, Indian IT stocks saw substantial gains. TCS surged by 189%, Infosys by 182%, Wipro by 148%, HCL Tech by 138%, and Tech Mahindra by 117%. Smaller IT stocks, including Mastek Ltd, Coforge Ltd, and Tata Elxsi, recorded impressive growth of up to 500% during the same period, according to data from AceEquity.
JM Financial highlighted that Trump’s expansionary fiscal policy, particularly the reduction of corporate tax rates from 21% to 15% for domestic production, could benefit the IT sector by reducing budgetary constraints. “While Trump’s presidency may have headline negatives, it is unlikely to significantly impact Indian IT services. Conversely, a Harris presidency would likely maintain the status quo,” JM Financial stated.
As investors remain focused on the election’s outcome, the IT sector’s gains underline optimism in the potential for strong growth under another Trump term.
