US Election 2024 has sparked a rally in the Nifty IT index, led by gains in major tech firms like Persistent Systems, LTIMindtree, TCS, and Infosys, reflecting optimism on American stock exchanges influenced by the presidential elections.
Persistent Systems Ltd. saw its share price increase by 4% to Rs 4,990, while LTIMindtree Ltd. experienced a rise of 3.86% to Rs 5,940. This surge occurred amid the counting process for the US presidential vote.
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The broader Nifty IT sector recorded a 3.11% jump, reaching 41,679.90, significantly outperforming the Nifty 50’s modest gain of 0.62%. This indicates robust sector-wide growth on the counting day.
American markets are crucial for Indian IT services, with significant revenue stemming from US-based operations. This makes the US elections a key event for these companies, affecting their stock performance.
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Brokerage reports suggest that a Republican victory might lead to reduced corporate taxes, potentially increasing IT budgets and benefiting firms like Infosys, which has substantial exposure to the US market.
Conversely, a Democratic win could result in higher corporate taxes, which might impact IT spending negatively. However, analysts note that any such changes could have a short-lived effect on the sector’s financial dynamics.
