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Indian IT stocks surge as Trump win fuels outsourcing and spending optimism
India's IT stocks are experiencing a notable rally, with a 7% increase in November, driven by expectations of a stronger dollar and increased tech outsourcing following Donald Trump's election. This sector is outperforming others amid weak earnings and significant foreign outflows, as demand from overseas clients improves and potential corporate tax cuts in the U.S. boost technology spending. The performance reflects a shift in fortunes for exporters influenced by Trump's early policy signals, including proposed tariffs on goods manufacturers.
Nifty IT Index Reaches Record High Amidst Strong Smallcap Stock Performance
The Nifty IT index reached a record high of 44,085, with a 40% gain over the past year, reflecting strong performance in the sector despite previous challenges. Experts attribute this rebound to robust order books and significant deals from major firms like Infosys and TCS, alongside resilient demand in banking, healthcare, and retail. While near-term pressures may affect margins, long-term growth is expected to stem from earnings rather than stock price increases.
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