IT stocks down, pharma scrips’ gain on Trump’s victory
Mumbai, Nov 9 (IANS) The victory of Republican Party candidate Donald Trump in the US presidential election brought a mixed reaction from equity investors’ on several listed Indian companies.
While IT industries’ stocks remained under pressure after Trump’s victory, stocks of Indian pharma companies gained.
“Given Trump’s stance on high drug prices, it is likely that Indian pharma companies could gain more foothold in the US market,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.
“This is in contrast to the regulatory fears if the democratic candidate were to win. This sentiment was reflected today (Wednesday), as pharma stocks were among the first to swing higher when the Republican Party’s victory became clearer.”
On the BSE, stocks of Dr.Reddy’s Lab surged by 5.04 per cent to close the day’s trade at Rs 3,271.70, whereas, share price of Sun Pharmaceuticals rose by 4.07 per cent to Rs 661.10.
In addition, the scrip of Lupin inched up by 1.31 per cent to Rs 1,529.05; however, Cipla’s stocks inched lower by 1.52 per cent to Rs 528.10.
On the other hand, IT sector stocks declined on Wednesday.
The scrip of Tata Consultancy Services (TCS) declined by 4.93 per cent to Rs 2,171.05, Infosys’ stocks dropped by 2.74 per cent to Rs 955.85, and Wipro’s share price receded by 1.27 per cent to Rs 447.20.
“Trump terms H1B visa programme as ‘unfair’, and his stated purpose is to end the programme. After Trump’s win, Indian IT stocks and IT companies like TCS and Infosys are likely to be the first victims of this policy,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Bringing jobs back to America could mean harsher conditions for entry of immigrants from India. In today’s session most sector stocks recovered well from the day’s low but IT stocks witnessed selling pressure throughout the session and failed to witness any smart recovery.”
On Wednesday, the Indian equity markets remained deep in the red during most of the trading hours, but finally recovered towards the fag end to close lower by slightly more than a per cent.
Following global cues, as also domestic developments, key Indian indices had reacted adversely to the victory of Donald Trump and the government’s decision on Tuesday evening to demonetise Rs 500 and Rs 1,000 currency notes.