NEW DELHI: Shares of IT companies with huge exposure to the American market plunged up to 9.5 per cent today after Donald Trump beat Hillary Clinton in the knife-edge polls, defying the odds to become the 45th US President.
"As far as sectors are concerned, the major impact will be on IT. The IT sector is already struggling with reduced spending, now the views voiced by President regarding bringing back jobs to the US again will create more trouble for the already nervous sector," said Mustafa Nadeem, CEO, Epic Research Pvt.
Among blue-chips IT scrips, Wipro nosedived 9.48 per cent, Infosys 8.39 per cent and TCS 6.19 per cent on BSE. Shares of Tech Mahindra dropped 9.55 per cent and HCL Technologies slumped 5.60 per cent.
Following the deep fall in these stocks, the BSE IT index dipped 3.47 per cent during the afternoon trade. According to market experts, the Indian IT companies have been outsourcing their services to US companies and earning approximately more than 60 per cent of their revenue from the US market only.
"As it is going to be Donald Trump presidency, it is negative for the IT sector because he is in the camp which is likely to bring tightening in outsourcing," said Rohit Gadia, CEO, CapitalVia Global Research. The BSE Sensex was trading 315.66 points lower at 27,294.68 during the late afternoon trade.