India: Congress Party Win Is Good News for Tech Sector

 |  Includes: CTSH, INFY, REDF, SIFY, WIT
by: Eric Savitz

Indian tech stocks are going to lead the way higher Monday morning, following a 17% rally in the Indian stock market Monday on the Congress Party’s decisive victory in the country’s national elections. Investors in India expect the election results to translate into economic reforms in the country. The Indian stock market triggered a series of circuit-breakers that results in the suspension of trading in the face of mammoth buy orders. I’d note that the rally includes not just the usual IT outsourcing stocks, but also some more speculative Indian Internet stocks: check out the fat gains in and Sify.

Indian stocks traded in the U.S. are poised for substantial gains. In early trading Monday:

  • Infosys (NASDAQ:INFY) is up $4.15, or 10%, to $36.17.
  • (NASDAQ:REDF) is up 77 cents, or 30.9%, to $3.26.
  • Cognizant (NASDAQ:CTSH) is up $1.06, or 4.1%, to $26.82.
  • Sify (NASDAQ:SIFY) is up 26 cents, or 20.2%, to $1.55.
  • Wipro (NYSE:WIT) is up $1.22, or 11.4%, to $11.91.

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