How Will Tech & Pharma Stocks Perform Under Trump 2.0.

With Donald Trump winning the U.S. presidential election, there’s growing interest in how IT and Pharma stocks will perform in the coming months. Avinash Gorakshakar, Head of Research at Profitmart Securities, shares his insights on this pivotal moment for Indian industries. He notes that while IT and Pharma sectors may present opportunities, there’s still a degree of caution until clearer policies from Trump’s administration emerge. Trump’s strong American pitch and potential tariff hikes could introduce more volatility, particularly for Indian companies with significant U.S. exposure. However, India’s strong diplomatic ties with Trump and his critical stance on China could give Indian companies an advantage. Major IT giants like Infosys, TCS, and HCL Tech, with substantial U.S. business, may see shifts in their order books, though the full impact will become clearer by December. For Pharma, Trump’s tariff policies could influence growth, making the sector’s outlook more complex. For now, Avniash Gorakshakar advises investors to wait and watch, especially with large caps possibly consolidating in the short term. Markets are hopeful for volume growth, but it’s a period that calls for patience and strategic foresight. Donald Trump’s focus on hiring U.S. workers had impacted Indian IT companies during his previous term. However, Dinshaw Irani, CEO of Helios Capital, observes that many Indian IT firms now have a large portion of local employees in the U.S., reducing potential disruptions from this policy. He also notes that Trump’s planned corporate tax cuts could increase U.S. corporate spending, likely boosting demand for IT services. Dinshaw Irani highlights TCS as a key player in this growth and believes the IT and banking sectors will lead the market. Helios Capital remains optimistic about the potential for Indian IT.