The Nifty IT index is getting close to a two-month high after Indian tech stocks increased for the third day in a row. Investor confidence in the IT sector increased as major businesses like Tech Mahindra and TCS saw notable gains, bolstered by optimism and promises on H1-B visas.
On Wednesday, November 12, Indian tech stocks continued to rise for the third straight session. The sector's sentiment remained positive despite several encouraging developments, which brought the Nifty IT index near a two-month high and made it one of the main drivers of the recent surge in frontline indices.All 10 of the index's components saw advances, with Tech Mahindra leading the way with a 3.6% increase to ₹1,459, followed by LTIMindtree, Mphasis, and TCS, all of which had increases of up to 3.5%.
Persistent Systems, Oracle Financial Services, HCL Tech, Coforge, Wipro, and Infosys were among the other important equities that had rises of 1.5% to 2.2%.
The Nifty IT index surged 2.16% to a day's high of 36,911 after the robust increase in individual stocks, reaching its highest level since September 18. Taking today's high into consideration, the move also produced a three-day cumulative gain of 5.10%.
A number of factors, including US President Donald Trump's more lenient position on H1-B visas, the US-India trade deal's advancement, the easing of worries over the US government shutdown, and increased expectations of another interest rate cut by the US Federal Reserve, contributed to the current gain.
The Nifty IT index surged 2.16% to a day's high of 36,911 after the robust increase in individual stocks, reaching its highest level since September 18. Taking today's high into consideration, the move also produced a three-day cumulative gain of 5.10%.
A number of factors, including US President Donald Trump's more lenient position on H1-B visas, the US-India trade deal's advancement, the easing of worries over the US government shutdown, and increased expectations of another interest rate cut by the US Federal Reserve, contributed to the current gain.
Trump's more lenient stance toward H1-B visas
In an interview on Tuesday, US President Donald Trump seemed to soften his position on H1-B visas, stating, "We have to bring in talent." The United States "does not have plenty of talent," he underlined.
"You can't take people off the unemployment line and say, 'Go make missiles,'" Trump clarified. He said, "I agree, but we also do have to bring in talent," in response to a question on increasing American wages without bringing in a large number of foreign workers. "No, we don't," he added. People need to learn, and you don't have any particular skills.
In an interview on Tuesday, US President Donald Trump seemed to soften his position on H1-B visas, stating, "We have to bring in talent." The United States "does not have plenty of talent," he underlined.
"You can't take people off the unemployment line and say, 'Go make missiles,'" Trump clarified. He said, "I agree, but we also do have to bring in talent," in response to a question on increasing American wages without bringing in a large number of foreign workers. "No, we don't," he added. People need to learn, and you don't have any particular skills.
The remarks supported the IT industry by reassuring markets that skilled talent flows from India to the US could continue. The Trump administration levied a $100,000 cost on H-1B visas in September. Employers, students, and employees from the US to India and beyond were taken aback and perplexed by the change.
The US government shutdown is almost finished.
The news that the US government shutdown will probably end shortly added to the positive attitude among investors. The majority of the government will remain operational through January 30, with other agencies receiving financing until September 30, according to a temporary budget package voted by the Senate on Wednesday.
The US government shutdown is almost finished.
The news that the US government shutdown will probably end shortly added to the positive attitude among investors. The majority of the government will remain operational through January 30, with other agencies receiving financing until September 30, according to a temporary budget package voted by the Senate on Wednesday.
The funding proposal is anticipated to be reviewed by the House of Representatives when they return to Washington. President Trump, who has already endorsed the law, will receive it if it is adopted. Concerns about protracted disruptions to economic activity were allayed by this development.
Developments in the US-India trade agreement
As the two nations work toward a trade agreement, Trump said on Monday that tariffs on India would be reduced "very substantially," indicating a thawing of hostilities over New Delhi's purchases of Russian oil.
"We're negotiating a fantastic agreement with India. The tariffs will significantly decrease. At Sergio Gor's inauguration as the US ambassador to India, Trump declared, "It will happen at some point."
Developments in the US-India trade agreement
As the two nations work toward a trade agreement, Trump said on Monday that tariffs on India would be reduced "very substantially," indicating a thawing of hostilities over New Delhi's purchases of Russian oil.
"We're negotiating a fantastic agreement with India. The tariffs will significantly decrease. At Sergio Gor's inauguration as the US ambassador to India, Trump declared, "It will happen at some point."
Mint originally revealed on September 22 that an agreement is expected to be announced in November and that US tariffs on India could be lowered from a whopping 50% to 15–16%. Due to a 25% penalty levy on New Delhi's purchase of Russian oil, Indian imports to the United States are currently subject to 50% tariffs.
Expectations of a US Fed rate reduction increase
Signs of a sluggish labor market have raised expectations of another rate decrease from the US Federal Reserve. In the four weeks ending October 25, US corporations lost an average of 11,250 jobs per week, according to private statistics, underscoring continued weakness and bolstering the possibility of additional rate reductions.
Expectations of a US Fed rate reduction increase
Signs of a sluggish labor market have raised expectations of another rate decrease from the US Federal Reserve. In the four weeks ending October 25, US corporations lost an average of 11,250 jobs per week, according to private statistics, underscoring continued weakness and bolstering the possibility of additional rate reductions.
The probability of a 25 basis-point rate drop next month is presently priced in by traders at about 68%.
Declining consumer sentiment, which plummeted to its second-lowest level ever in November, is another source of pressure. As the US prepares to end its longest-ever government shutdown, investors are also anticipating a rush of official data.
Declining consumer sentiment, which plummeted to its second-lowest level ever in November, is another source of pressure. As the US prepares to end its longest-ever government shutdown, investors are also anticipating a rush of official data.
0 Comments