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A much healthier United States labor market is a favorable signal for Indian IT companies, which create a considerable section of their earnings from the United States market.
Sensex Today (Representative/ PTI File)
The Nifty IT index leapt virtually 2 percent on November 22, driven by solid United States labor market information. Initial unemployed insurance claims in the United States dropped by 6,000 to a seasonally changed 213,000 for the week finishing November 16, noting a seven-month reduced. This recommends a prospective rebound in united state task development for November, complying with a stagnation triggered by storms and strikes last month.
A much healthier United States labor market is a favorable signal for Indian IT companies, which create a considerable section of their earnings from the United States market.
At 12:15 PM, the Nifty IT index was up 1.42 percent at 42,550, with TCS, Infosys, and HCLTech leading the gains. This noted the 3rd successive day of gains for the index. After decreases of 2 percent in September and 3.7 percent in October, the Nifty IT index has actually recoiled with a gain of over 5 percent until now in November.
All 10 supplies in the IT index were trading greater, with specific gains varying from 1 percent to 2 percent.
Shares of midcap IT company Mphasis were the leading gainers on the Nifty IT index, climbing virtually 3 percent in very early trading. The rise complied with the firm’s news as the “Official Digital Partner” of the MoneyGram Haas F1 Team. Haas Formula LLC, which operates as the MoneyGram Haas F1 Team, is a US-based Formula One team founded in April 2014 by Gene Haas, who also co-owns a NASCAR Cup Series team.
Mphasis revealed it will collaborate with the team to develop innovative solutions to enhance on-track performance and improve operational efficiency off the track.
Shares of HCLTech also attracted attention after a recent report from Morgan Stanley highlighted that the company’s US operations are well-positioned to mitigate risks from potential changes in US visa regulations, particularly if Donald Trump returns to the White House. Around 80% of HCLTech’s US-based employees are non-visa dependent, which strengthens the company’s position.
In a November 19 research note, Goldman Sachs Global Investment Research stated that revenue growth for Indian IT companies has likely bottomed out and expects an acceleration to 8% YoY growth in FY26, compared to just 1% or 4% in FY24/FY25E. The expected growth is driven by improving demand trends, deal ramp-ups, and a recovery in the small deal pipeline.
Key factors to watch, according to Goldman Sachs, include the revival of discretionary spending by enterprises, as reflected in the increase in the small deal pipeline, and the emerging monetizable opportunities from generative AI. However, the brokerage warned that prolonged macroeconomic weakness and the deflationary impact of generative AI could present risks for IT companies.
