Are bulls anticipating a Trump win? IT stocks rally up to 5%
With Donald Trump's win likely priced in, the downside in IT stocks is not anticipated on the back of Q2 earnings.
As the counting for the historic 2024 US Presidential election is underway and there is a high likelihood of Donald Trump taking over, with him leading in more states, the Indian markets are trading strongly with the Sensex swiftly breaching 80,000 levels and Nifty scaling over 24,400 levels.
Sectorally, amid across-the-board buying, the IT pack emerged as the top performer with gains of up to 3.5 per cent at the day's high. Notably, the tech stocks-heavy Nasdaq Composite index shot up 259.2 points, or 1.4 per cent, to 18,439.2 in the overnight trade.
From the pack, top gainers included stocks like Persistent Systems, LTIMindtree, TCS, Infosys, HCL Technologies, Coforge, Tech Mahindra and L&T Technology Services gaining between 3-5 per cent.
Amid such sharp gains, stocks like HCL Technologies, Wipro, and Persistent Systems are trading just 2-3 per cent away from their 52-week high price, respectively.
There is a belief that if Donald Trump wins the US presidential race, the corporate tax structure will be tweaked lower, leaving corporates with more budgetary outlay. This enhanced budget will then augur well for Indian IT companies who have been facing the wrath of lower spending across verticals.
Zee Business Managing Editor also pointed that a clear outcome of the US election in early trends may give a clear direction to Dalal Street, with markets anticipating higher chances of a Trump win in the historic election.
Also, he expected a strong breakout at the 24,500 mark on the Nifty50 with spaces like PSUs, metals and IT enjoying rapid buying.
Outlook for IT stocks
Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers said, "the Trump coming back is already priced in the sector and since the outcome is also looking similar we are not expecting much downside from here merely due to results.
Some short covering may happen as event gets over. However, we need to wait for new administration to take over and see their policies. Overall, worst is behind and we could see some improvement for the sector in H2FY25, he adeed.
Catch all the latest stock market updates here. For all other news stories in buzzing categories ranging from technology and automobiles to personal finance, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
02:13 PM IST