US inflation in April 2024 increased by a smaller margin than anticipated, indicating a continuation of the downward trend. This development has bolstered Wall Street’s outlook for a potential interest rate cut by the US Federal Reserve in September, aligning with market expectations.
According to data released by the Labor Department’s Bureau of Labor Statistics on May 15, The US consumer price index (CPI) rose 0.3 percent sequentially.
Furthermore, Shares of Indian information technology companies were trading firmly in the green on Thursday’s trading session. This was driven by a US April inflation report that came in lower than anticipated, fueling optimism among investors for a Federal Reserve interest rate cut in September.
Consequently, shares of HCLTech, LTIMindtree, Infosys, Coforge, Tech Mahindra, L&T Technology and Mphasis rose 1 to 3 percent.
In the twelve months ending in April, the CPI increased 3.4 percent YoY, which follows a 3.5 percent rise in March 2024. The annual increase in consumer prices has dropped from a peak of 9.1 per cent in June 2022, however, the progress has since slowed. The April CPI data marks the first month of slowing annual data since January 2024.
Listed below are IT stocks wherein the companies generate a higher portion of their revenue from the American market:
Infosys Ltd
With a market capitalization of Rs. 5,95,753 crores, the shares of Infosys started Thursday’s trading session on a higher note at Rs. 1,433.95 compared to its previous close of Rs. 1,419.95. During the trading session, the shares hit a high of Rs. 1,455.75, gaining around 2 percent and are currently trading at Rs. 1,437.30 apiece.
Regarding the revenue distribution globally, the major IT corporation derives 59.6 percent of its revenue from the American region. Furthermore, 28.6 percent of its revenue originates from the European market, with the remaining 11.8 percent generated from India and other regions worldwide.
HCL Technologies Ltd
With a market capitalization of Rs. 3,63,102 crores, the shares of HCL Technologies started Thursday’s trading session on a higher note at Rs. 1,345 compared to its previous close of Rs. 1,332.90. During the trading session, the shares hit a high of Rs. 1,357.80, gaining around 2 percent and are currently at Rs. 1,332.55 apiece.
The multinational IT services company derives revenue from various regions worldwide, with the Americas being the primary contributor at 65.2 percent. Following closely, the European market contributes 28.9 percent to the revenue stream, while the rest of the world accounts for the remaining 5.9 percent.
LTIMindtree Ltd
With a market capitalization of Rs. 1,39,552 crores, the shares of LTIMindtree started Thursday’s trading session on a higher note at Rs. 4,665.95 compared to its previous close of Rs. 4,649.30. During the trading session, the shares hit a high of Rs. 4,768, gaining around 2 percent and are currently trading at Rs. 4,711 apiece.
The company generates revenue globally, with a substantial portion of 73.8 percent originating from North America. European markets contribute 14.6 percent to the revenue stream, while the rest of the world accounts for 11.6 percent.
Mphasis Ltd
With a market capitalization of Rs. 44,243 crores, the shares of Mphasis started Thursday’s trading session on a higher note at Rs. 2,295 compared to its previous close of Rs. 2,274.35. During the trading session, the shares hit a high of Rs. 2,371, gaining around 3 percent and are currently trading at Rs. 2,339 apiece.
During the March quarter, Mphasis derived revenue from various regions worldwide, with the Americas being the primary contributor at 81 percent. Following closely, the EMEA market contributes around 11 percent to the revenue stream, while the rest of the world accounts for the remaining 8 percent.
Written By Vaibhav Patil
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