IT stocks catch cold as Trump warms up to outsourcing curbs

Valuation gap between top IT stocks and Sensex widest since 2009 on low export growth fears

Trumponomics is adding to the expenses for India’s biggest information technology (IT) exporters. 

Fear of lower export growth to the US has made IT companies among the cheapest stocks on the bourses. The valuation gap between software service firms’ stocks and the benchmark Sensex on the BSE is at its widest since March 2009. The top five IT companies are trading at a trailing price-to-earnings multiple (P/E) of 16.7, against the Sensex’s multiple of 22.1.

In contrast, IT stocks had led the valuation charts during the better part of the past decade. 

The change is, actually, largely due to gross