Tata Consultancy, Infosys Fall on Concern About Obama Victory

Tata Consultancy Services Ltd. led Indian software stocks lower in Mumbai trading on speculation U.S. companies may place fewer outsourcing orders overseas should Barack Obama win the presidential elections.

``There are concerns about Obama coming to power,'' said Harit Shah, a Mumbai based analyst with Angel Broking Ltd., who has a ``cautious'' rating on the Indian software-services industry. ``Generally, he is perceived to be against outsourcing. He has a stance that he wants to keep jobs in the U.S.''

Senator Obama was ahead of John McCain in national pre- election polls yesterday. The Democratic nominee plans to enforce existing trade agreements, including raising pressure on China to raise the value of its currency, and ``update'' the North American Free Trade Agreement to include tougher labor and environment provisions, Lael Brainard, an Obama campaign adviser, said last month.

Tata Consultancy, the nation's largest software-services provider, declined 7.6 percent to close at 506 rupees in Mumbai, while nearest rival Infosys Technologies Ltd. fell 3.3 percent. Wipro Ltd., Satyam Computer Services Ltd., and HCL Technologies Ltd. also dropped. India's Bombay Stock Exchange Sensitive Index rose 2.8 percent.

Source: bloomberg.com