IT stocks led the rally in Indian market today as results of US presidential elections signaled a tight contest between President Donald Trump and challenger Joe Biden. BSE IT index jumped 799 points intra day to 21,688 against previous close of 20,889. The rally came on reports Biden was giving a tough fight to President Trump.
Trump has been implementing policy of America First and announced plans to sharply limit visas issued to skilled workers from overseas to enable job creation for locals hit by the coronavirus pandemic.
According to reports, about one-third of applicants would be denied under the new rules, which include limits on the number of speciality occupations open to H-1B holders.
This would adversely hit Indian IT companies who send their workers to US through H-1B visa route.
A Biden win will likely offer some respite to the Indian IT workers, which led the IT stocks to rally in trade today.
The Indian rupee falling to a two-month low of 74.67 per dollar also boosted shares of IT firms that mostly earn their revenue in dollars but report it in rupees.
The rupee fell to 74.78 per dollar against its previous close of 74.40.
Nifty IT index rose 732 points intra day on prospects of win by challenger Joe Biden.
On Sensex, Infosys, TCS, Tech Mahindra and HCL Tech were among the top gainers. While Infosys share rose 5.11% intra day to Rs 1116, TCS touched an intraday high of Rs 2720.45, gaining 3.34% on BSE.
Meanwhile, Sensex gained 250 points to 40,501 and Nifty was trading 65 points higher at 11,880 in afternoon trade.