The BSE information technology (IT) index touched a fresh 52-week low of 9,147.84 points to close at 9,524.53 points, down 3.28% on Wednesday post the victory of Republican candidate Donald Trump who is considered to be anti-immigration and globalisation. Trump, during his campaigns had stated that he aimed at bringing jobs back to the US, pointing at the manufacturing business in China and the IT industry in India.
Reacting to this, shares of IT firms like Infosys, Wipro and Mindtree touched a new 52-week low and ended the session down between 1% and 3%. The stock of Infosys closed at R955.85, down around 30 points or 2.7%. Narayana Murthy, founder and chairman emeritus, Infosys told a business news channel, “I don’t think we should worry about these macroeconomic issues because there is so much of opportunities for us, the Indian companies.” This, he said, can be accomplished by improving the productivity and quality of the company and bringing new innovations. He further added, “All we need to do is to become even more attractive to our American customers and then I believe that we will continue to grow like we were.”
Other IT firms like Tata Consulting Services (TCS), Tech Mahindra, HCL Technologies and Hexaware Technologies saw their shares losing between 2% and 5%. Sunil Sharma of Sanctum Wealth Management believes that the victory of Donald Trump in the elections would only have a short-term negative impact on the IT sector. Sharma added, “Trump recently hawkishly said his government would stop jobs from leaving America. Trump accused IBM of laying off 500 workers in Minneapolis and shifting their jobs to India and other countries as he warned of levying a 35% tax on companies doing so if he is elected.”