Infosys shares jump 5%, TCS over 3%; IT stocks rally ahead of US presidential election result

IT stocks were in focus today as Nifty IT index gained over 3.5 per cent on Wednesday amid US presidential election vote counting. As per the latest trends, Democratic candidate Joe Biden has bagged 223 electoral votes so far, while Republican candidate Donald Trump has won 174. The candidate that receives a majority of the 538 electoral votes, or at least 270 votes, will win the presidency. Analysts expect that medium-term technology demand will likely to remain buoyant in either scenario. “We highlight that Joe Biden has a comparatively softer tone on immigration vs President Trump which will aid in easy movement of technology talent,” Suyog Kulkarni, Senior Research Analyst at Reliance Securities, told Financial Express Online.

On the other hand, Kulkarni also added that Trump victory may provide continuity of current fiscal policy which provides better visibility to near to mid-term enterprise tech budget outlook. During intraday deals, Infosys shares jumped 5 per cent to Rs 1,116 apiece, Tata Consultancy Services (TCS) gained 3.3 per cent to Rs 2,721.55 apiece, while HCL Technologies shares added 3.4 per cent to Rs 841.75 apiece on NSE. Wipro shares were trading 4.7 per cent higher at Rs 351.45 apiece on BSE. The Nifty IT index was the top sectoral gainer today. 

Nomura in its October report raised target multiples and revised target prices upwards across the board. Infosys, HCL Technologies and Tech Mahindra were among its top Buys. While it retained a neutral rating on TCS and reduce on Wipro. On the BSE Sensex pack, Infosys, TCS, Tech Mahindra and HCL Technologies shares were up in the range of 1.13-2.39 per cent. 

Meanwhile, BSE Sensex regained momentum and was up 235 points or 0.59 per cent to trade at 40,497, while the broader Nifty 50 index was ruling at 11,882, up 68 points or 0.58 per cent