Shares of five IT companies fell by 2.39% to 5.17% at 12:15 IST on BSE as Republican candidate Donald Trump is slated to win US presidential elections against Democratic counterpart Hillary Clinton,
Meanwhile, the S&P BSE Sensex was down 947.46 points or 3.43% at 26,643.68.
HCL Technologies (down 2.39%), TCS (down 5.17%), Infosys (down 3.24%), Tech Mahindra (down 4.6%) and Wipro (down 2.41%) edged lower.
The BSE IT index underperformed the market over the past one month till 8 November 2016, falling 2.33% compared with the Sensex's 1.67% fall. The index also underperformed the market in past one quarter, dropping 10.35% as against the Sensex's 2.1% decline.
So far, Trump won 264 votes and Hillary won 215 votes in a 270 Electoral College votes needed to win the White House. Trump is known to be in favour of protectionist measures, such as stricter visa norms to curtail jobs for Indian and other non-US employees. Trump has made outsourcing and liberal immigration laws a major campaign issue in this election in an effort to protect American jobs. IT firms profit margins are expected to come under pressure if Trump tightens immigration laws and take harsh measures to discourage outsourcing.
US is the biggest outsourcing market for the Indian IT firms.
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