MUMBAI: With just a few days left for the US Presidential election and the latest opinion polls showing a narrowing of gap between the Republican nominee Donald Trump and Democratic candidate Hillary Clinton, stocks of domestic IT companies have started feeling the pressure the most. Anxious investors have started trimming their exposure to the IT sector dragging down the stocks of Infosys, Wipro and Mindtree to their 52-week low on Thursday.
“A Trump victory would be a big negative for the domestic IT sector,” said Ravi Sundar Muthukri-shnan, co-head-research at ICICI Securities. “The sector, which generates a significant portion of their revenue from the US is already going through pain with companies in the developed markets cutting down their discretionary spending. Over and above that Mr Trump’s call for stricter immigration laws and his strong stand against outsourcing of jobs have created nervousness in the market,” he added.
While the shares of Infosys hit a fresh 52-week low of '965.10 before closing the day at Rs 966.90, the shares of Wipro and Mindtree hit a low of '446.15 and Rs 425 respectively. The weakness in major IT stocks also pulled down the BSE IT index to its 52-week low.
