Shares of IT firms, which have significant exposure to the US market, plunged by up to 5 per cent on Wednesday after Donald Trump defeated Hillary Clinton in the knife-edge polls to become the 45th US President, on fears of an anti-outsourcing drive in the new regime.
TCS dipped by 4.93 per cent, Infosys lost 2.74 per cent and Wipro went down by 1.27 per cent on BSE. Shares of Tech Mahindra dropped 4.10 per cent, Hexaware Tech fell by 3.71 per cent and HCL Tech dipped 2.76 per cent.
Following the losses, the BSE IT index lost 3.28 per cent to settle at 9,524.56.
Sanctum Wealth Management’s chief investment officer Sunil Sharma said it is feared that the IT sector could get negatively impacted, especially in the short-term. “However, we do not expect significant impact in the long term as the cost advantage of emerging nations like India should outweigh going forward,” he said.
The IT industry however leaned on Mr Trump’s business credentials to hope he would not push through with his anti-outsourcing rhetoric.
