Tata Consultancy Services (TCS) led Indian software stocks lower in Mumbai trading on speculation that US companies may place fewer outsourcing orders overseas, should Barack Obama win the presidential elections.
“There are concerns about Obama coming to power,’’ said Harit Shah, a Mumbai-based analyst with Angel Broking, who has a “cautious’’ rating on the Indian software-services industry. “Generally, he is perceived to be against outsourcing. He has a stance that he wants to keep jobs in the US.’’
Senator Obama was ahead of John McCain in the national pre-election polls yesterday. The Democratic nominee plans to enforce existing trade agreements, including raising pressure on China to raise the value of its currency, Lael Brainard, an Obama campaign adviser, said last month.
TCS, the nation’s largest software-services provider, declined 7.6 per cent to close at Rs 506 on the BSE, while nearest rival Infosys Technologies fell 3.3 per cent. Wipro, Satyam Computer Services and HCL Technologies also dropped.