Tale of the Tape 

Good evening everyone and a very Happy New Year!

Markets popped off today! Nifty (+1.9%) and Sensex (+1.8%) closed at their highest level since December 18 led by broad-based buying. Midcaps (+1.1%) and Smallcaps (+0.6%) saw solid gains too. 364 stocks in the NSE 500 ended in the green!

Not a single sector ended in the red. Auto (+3.8%) led the rally, followed by IT (+2.2%) and Oil & Gas (+1.3%).

As Trump assumes charge, what’s on the cards for India’s IT sector? Read our top story to see how things will shake out.

Easy Trip Planners has a promoter headache. More details below on what’s ailing the stock.

Eicher Motors, Bajaj Finance and Petronet LNG saw big moves today. Check out their charts below to find out why.

Wipro was in focus after CLSA downgraded the stock. PS - this comes just six months after the brokerage double upgraded the firm!

Ola Electric (-3%) was under pressure after Bajaj Auto took away its #1 crown, according to media reports. 

Indo Farm Equipment IPO was subscribed over 200x on its final day of bidding.

Jai Corp was locked in a -20% lower circuit after a controversial land sale to Reliance Industries.

Order wins. Force Motors soared +9% after bagging a contract to make 2,429 ambulances for the UP govt. Railtel (+4%) gained after winning a Rs 78 cr order from Bharat Coking Coal.

Here are the closing prints:

Sector
What’s Next For Tech?

Trump will be sworn in two weeks! The big question: how will India’s IT sector hold up? Experts say there’s one big positive and one big negative. Here’s the lowdown on how to place your bets.

Let’s start with the potential downside. IT firms have historically depended on H-1B visas. Trump (and his best friend Musk), support H-1Bs for top talent but look down on Indian companies that try to game the system. There’s already been heated social media debate over this. ICYMI- in Trump’s first term, H1B rejection rates jumped to 24% vs 8% under Obama. On top of that, analysts say he could bring in a high ‘minimum salary’ rule for any H1B visa holder, a big negative for Indian firms! 

That said, how will this actually play out? Most experts are not too worried. Macquarie points out a H1B wage floor isn’t practical (different sectors require different pay) & could cause BIG consequences for the US economy. Equally important: Indian IT firms aren’t that reliant on H1Bs anymore. FYI - the dependence of top firms for H1B approvals has fallen by ~30% since 2016! Macquarie’s top picks here are TCS and HCL Tech.

Then there’s the upside. Trump wants to boost America’s oil & gas production. This means BIG opportunities for the energy & utility (E&U) verticals of some Indian companies. FYI - under Trump 1.0, E&U spending soared and analysts predict the same could happen this time as well. PS - Philip Capital’s top picks here are Cyient (E&U exposure of 17%) and Infosys (E&U exposure of 13%).

TL;DR: H1B visa concerns are overrated and the potential for topline opportunities in the energy business are underrated! Macquarie and Philip Capital’s top picks are TCS, HCL Tech, Cyient and Infosys!