Shares of information technology companies such as Wipro, TCS, and Infosys were trading lower on Monday after country’s third-largest software , services exporter Wipro said US president Donald Trump’s administration and his regulations could be a potential threat to its growth.
Reacting to the development, the Nifty IT index fell over 1% to 10,314, and was among the top three sectoral losers on NSE.
Among individual stocks, Wipro was the top loser on Sensex and Nifty and dipped over 2% to Rs 523 on the NSE. TCS and Infosys were also down up to 1%.
Wipro, in its filing to the US Securities and Exchange Commission said “developments stemming from the recent US Presidential election could have a material adverse effect” on its growth.
“On November 8, 2016, Donald J Trump was elected the next President of the United States. As a candidate, Trump expressed support for policies impacting existing trade agreements, like North America Free Trade Agreement. He also proposed trade agreements, thus, promoting greater restrictions on free trade generally and significant increases tariffs on goods imported into the United States,” said the company in the filing.
“Social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we currently operate could adversely affect our business,” Wipro added.
Meanhwile, on Friday top performing technology stocks in US plummeted after a leading investment bank warned that share prices of companies like Apple, Amazon, and Facebook had risen too quickly.
Facebook, Google parent Alphabet, Amazon and Apple all fell more than 3%, and Microsoft dropped 2.3% on Friday—though all five companies remain up by double digits for the year. Traders and analysts attributed the selloff in part to a research note by Goldman Sachs that called out the five companies’ recent outperformance as potentially overheated, reported Reuters.
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