In Monday's deal (October 5, 2020) Nifty IT in early trade was trading higher at 2.51 percent and all of the stocks have been driving the index higher except Mphasis.
Besides the earning season that kicks off with TCS results on October 7, brokerages as well as experts are highly optimistic on the outlook of IT pack stocks and anticipate higher revenues given the enterprise more expenditure on going digital given the Covid 19 pandemic and in all such areas such as cloud technology.
Here are however latest trigger which has pushed IT index higher up again today:
1. US court blocks Trump's ban on H1, L1 visa:
Despite the stringent call on the US President Trump on H1-B visa previously, the court has dismissed the order citing that Trump has wrongly used his powers. In his order, Trump vouched for temporary ban on issuance of various visas for foreign workers considering it to be a threat on domestic jobs. And the decision comes after representation from various IT companies such as Amazon. The decision shall serve several IT professional from India looking for US work permits.
US District court Jeffrey White on the case said that thinjunction will come into effective immediately till the trial is completed or further orders of the court.
2. A surprise buyback offer announced by TCS:
TCS in a surprise move on Sunday announced that it shall consider. And any positive momentum in the counter will be seen in other IT stocks including mid cap IT index. BSE IT index at the time of writing the report was up a massive 3.24% with TCS hitting a new high of Rs. 2649.95 per share.
Also Read CLSA's IT stock bets