Due to the global pandemic, a new wave of work-style has been highly prevalent- the ‘Work from Home’ norm.
Entire workstations and offices from almost every industry sector, have shifted to remote working, becoming highly reliant on cloud and IT services for better coordination of work.
It has been reported that after the news of the US government to soon release a stimulus package of $2.4 trillion, shares of IT companies spur up to 3% at the bourses (stock market in Europe) on Tuesday.
This led to Indian IT companies in the stock market to rise at a positive rate.
Indian IT Cos’ Gains
After a 3% rise in shares of IT companies at the bourses on Tuesday, Indian IT cos also reflected the trend in the NSE.
- Tata Consultancy Services gained 3%, trading at Rs 2,505 on NSE, close to it’s all-time high level of Rs 2,555, which was achieved on September 22, 2020.
- Infosys was up by about 2% to Rs 1,028, which was too close to the company’s record high, hit on Sept 23, 2020.
- IT cos like Mindtree, Wipro, Ramco Systems, Persistent Systems, Oracle Financial Services Software and eClerx Services had their stock values rise between 2-3%, as well.
- Nifty IT index was up 1.7% at 10:05 am, compared to Nifty 50 index, which showed a 0.11% rise at the given time.
- The IT index’s intraday high was recorded to be 20,146, close to its record high level of 20,332.
US Stimulus to Drive Positive Sentiments
According to the analysts at ICICI Securities, if the alleged US stimulus package is successfully passed, it will improve the US economy.
This will have a direct impact on the Indian IT industry as well, due to clear dependence and revenue generation of the latter on the US economy.
These analysts have also filled us in with the IT industry health and profits generated in the 1st quarter of 2021, from April-June.
This clearly creates a smooth pavement of acceleration for Indian IT industry in the following quarters too, which can again be backed up by the IT index in the stock market.