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<ul><li>A third wave of outsourcing is on its way and <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword> like <keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword>, Infosys and Tech Mahindra have the most to gain, according to <keyword id="6361649" type="UNKNOWN" weightage="20" keywordseo="Goldman-Sachs">Goldman Sachs</keyword>. </li><li>Riding the third wave, Indian IT services behemoths are on the edge of doubling their market share, seeing double digit revenue growth and wider margins.</li><li>TCS, in particular, will be racing ahead of the rest.</li></ul>There’s obvious opportunity for Indian IT companies like Tata Consultancy Services (TCS), Infosys, HCL Technologies and others as more businesses look to enable ‘work from anywhere’. This will be the third wave of outsourcing this millennium, according to Goldman Sachs, with the potential to double market share for Indian IT services giants, deliver double digit revenue growth and expand margins. <div type="image" title="IT market share to grow goldman sachs" msid="77864245" hostid="261"></div> <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Time period </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Outsourced IT services spend growth </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Last 10 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4-5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6-8% </td></tr></tbody></table>(Source: Gartner) “After a steep decline of 2.7% in USD revenues for the Top 5 Indian IT firms in FY21E due to the COVID-19 impact, we are expecting a sharp revival in growth over FY22 and FY23E,” said the global investment behemoth Goldman Sachs. The only company that seems to be left behind the fray is Wipro. <div type="image" title="Copy of IT market share to grow goldman sachs" msid="77864258" hostid="261"></div> TCS, on the other hand, may race ahead of the others. It has an edge since it’s the only Indian IT company with greater market share in healthcare than in manufacturing. <div type="image" title="Copy of Copy of IT market share to grow goldman sachs" msid="77864275" hostid="261"></div> “We see TCS as one of the largest beneficiaries of these trends given its wide array of services and capabilities, geographic presence, wide client base, consistent strong execution and ability to work remotely at a large scale with c.450K employees,” said the Goldman Sachs’ report dated August 28. Riding the increased reliance of businesses on digital technology, working from home also cuts down costs like transportation and infrastructure expenses, allowing companies to expand their margin and get a bigger bang for their buck. How Indian IT companies will ride the third wave of outsourcing Demand already exists. History also supports the conclusion that the Indian IT industry is normally a late cycle beneficiary of global changes in technology. When the first wave of outsourcing occurred in 2000 after Y2K — a computer program bug that was expected to cause havoc as the year changed from 1999 to 2000 — the Indian IT sector grew faster than 40% from a small base and minimal global penetration to Indian IT companies becoming market leaders, according to Goldman Sachs. And, again, after the 2008 GFC when the Indian IT industry grew at more than 15% for three to four years before growth returned to high single digits. “This happened both due to a shift to cloud based infrastructure and the higher use of automation tools, forcing Indian IT firms to look for new ways to sell IT solutions, shifting from labor cost arbitrage to business transformation through digital technologies,” explained the report. This is compounded by the fact that India is currently home to the largest pool of digital skilled employees in the world. <div type="image" title="snapshot-1598933384850" msid="77864293" hostid="261"></div> “We believe these digitally trained employees at Indian IT firms are likely to drive overall revenue growth, which would be the key reason for their increasing relevance amid the requirement for digital-at-scale solutions,” said Goldman Sachs. <div type="image" title="pjote chart" msid="77864307" hostid="261"></div> However, not everything is as rosy as it appears Even though businesses are looking to become more digital, recurring revenues for IT companies have been falling as compared to those vendors which specifically provide software as a service (SaaS) and infrastructure as a service (IaaS). In order to address this risk, Goldman Sachs argues that Indian IT services companies will focus more on signing large contracts that look after a client’s entire IT function. These companies also have the option to sell their solutions on a vertical-specialised platform — one that focuses on a specific industry — to increase stickiness of revenue. “Both of the above approaches require more fixed-price and outcome-based contracts with higher risk-reward,” said the global investment firm. Examples of this strategy being applied already exist with Infosys’ deal with Verizon in late 2018 and TCS’ deal with Walgreens Boots Alliance (WBA) for $1.5 billion in February earlier this year. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/dollar-index-is-at-a-two-year-low-and-heres-how-much-it-may-hurt-tcs-infosys-hcl-tech-and-others-if-it-stays-weak/articleshow/77843868.cms">Dollar Index is at a two-year low⁠ and here’s how much it may hurt TCS, Infosys, HCL Tech and others if it stays weak</a> <a href="https://www.businessinsider.in/stock-market/markets/news/there-arent-enough-shares-of-hdfc-bank-indusind-bank-and-kotak-bank-that-foreign-investors-can-buy/articleshow/77798108.cms">There aren’t enough shares of HDFC Bank, IndusInd Bank and Kotak Bank that foreign investors can buy</a> <a href="https://www.businessinsider.in/business/telecom/news/jio-adds-36-75-lakh-while-airtel-lost-47-72-lakh-subscribers-in-may/articleshow/77760669.cms">It's the day Airtel and Vodafone Idea have been waiting for – here’s the AGR case timeline of 26 years</a>

TCS, Infosys and HCL Tech have the most to gain from post COVID wave of outsourcing

<ul><li>The five large Indian IT services companies — Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra — are trading in the green today. </li><li>The rally in their share price is on the back of Accenture’s fourth-quarter earnings announced last night. </li><li>The company recorded $14 billion in new deal wins, more than half of which came from the outsourcing segment.</li><li>Its growth in revenue was driven by the health and public services vertical. </li></ul>Accenture’s latest earnings report strengthens the optimism for recovery in the Indian IT sector. And the rally in domestic IT stocks is a reflection of that. Tata Consultancy Services (TCS) is among the top movers in the market today. Its Indian IT services peers — Infosys, Wipro, HCL Technologies and Tech Mahindra — India’s top 5 most valuable IT stocks are also glittering green on the back of Accenture’s earnings. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in share price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.43% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.07% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.82% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.21% </td></tr></tbody></table>Source: BSE — Share price as of 9:50 am compared to previous day’s closing The fourth-quarter results of the Global IT services company indicate that demand is set to return to the sector. “Strong order booking, driven by outsourcing, implies demand is on the path to normalisation and recovery,” said Motilal Oswal in its report dated September 25. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Accenture's order book: </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New consulting orders </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6.5 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New outsourcing orders </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$7.5 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total new order value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$14 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New large clients ($100 million plus) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17 </td></tr></tbody></table> The traction seen in outsourcing and the focus on cloud, in particular, bodes well for the Indian IT industry. Of the $14 billion worth of bookings that Accenture had on its books during the fourth quarter, more than half was from outsourcing. As of Q4, 70% of the company’s revenue was coming from businesses like digital, cloud and security — areas where Indian companies have also been doubling down. “The shift to cloud helps build a foundation for digital transformation and deflates costs which can be reinvested by enterprises to fund their digital transformation initiatives,” said Japanese brokerage Nomura. Healthcare — the diamond in the rough The biggest growth driver for Accenture is health and public services. However, that particular vertical is unlikely to benefit Indian IT service companies the same way. Most of them have relatively low exposure to healthcare. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vertical </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quarterly growth by Accenture </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Health and public service </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Products </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Resources </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Communications, media and technology </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Financial services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.3% </td></tr></tbody></table> Nonetheless, TCS — recently having breached the ₹900 lakh crore valuation — is the only Indian IT services giant who’s healthcare market share is greater than its take of the manufacturing market. <div type="image" title="tcs healthcare (1)" msid="78309569" hostid="261" caption="&amp;lt;p&amp;gt;TCS share in the healthcare market&amp;lt;/p&amp;gt;"></div> Accenture’s revenue in the three months ended August fell 2% over the previous quarter to $10.84 billion. For the next fiscal year, the company expects operating margin to be in the range of 14.8% to 15.0%, an expansion of 10 to 30 basis points over the previous year. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-and-sbi-customers-are-facing-upi-payment-glitches/articleshow/78293815.cms">HDFC Bank and SBI customers are facing UPI payment glitches</a> <a href="https://www.businessinsider.in/defense/news/drdo-waives-performance-security-for-development-contracts-as-an-incentive-for-the-private-sector/articleshow/78295788.cms">DRDO waives ‘performance security’ for development contracts as an incentive for the private sector</a> <a href="https://www.businessinsider.in/science/space/news/the-first-ever-supermassive-black-hole-to-be-captured-on-camera-has-a-wobbly-shadow/articleshow/78290040.cms">The first-ever supermassive black hole to be captured on camera has a wobbly shadow</a>

TCS, HCL Tech, Infosys, and other IT stocks rally led by Accenture’s outsourcing strength

<ul><li>The cheer around Accenture’s earnings is trickling to Indian IT stocks with Infosys, <keyword id="141968" type="CITY" weightage="20" keywordseo="HCL-Tech">HCL Tech</keyword>, <keyword id="10862" type="CITY" weightage="20" keywordseo="Wipro">Wipro</keyword> and <keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword> rallying on December 17. </li><li>Accenture beat revenue estimates, brought in $12.9 billion in new deals, and its utilisation hit a 10-year high of 93%. </li><li>As outsourcing continues to remain one of the key drivers for Accenture and the likes of TCS, Infosys and HCL Tech have the most to gain from this wave. </li></ul>Accenture saw its stock surge by 10% after its better-than-expected earnings on December 17. The company’s revenue beat market estimates, bookings were at a whopping $12.9 billion and its utilisation hit a 10-year high of 93%. The company also increased its revenue guidance for the current fiscal year to between 4% to 6%, up from its previous forecast of 2% to 5% growth. Meanwhile, in India, Infosys, HCL Tech, Wipro and TCS are reaping the benefits. Both TCS and Infosys have hit new 52-week highs on the exchanges today. “We see Accenture’s strong 1QFY21 performance as a positive for companies under our Indian IT Services coverage,” said Motilal Oswal in its report dated December 18. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in share price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.63% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.53% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.93% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.69% </td></tr></tbody></table>Source: BSE, as of 10:00 am on December 17 Outsourcing wave continues Accenture's saw a 25% jump in new deals compared to last year between September and November. This includes 16 clients with over $100 million in bookings. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bookings </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consulting </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6.6 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Outsourcing </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$6.3 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TOTAL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$12.9 billion </td></tr></tbody></table>Source: Accenture's Q1FY21 earnings As outsourcing continues to remain one of the key drivers for Accenture and the likes of TCS, Infosys and HCL Tech <a href="https://www.businessinsider.in/tech/enterprise/news/rise-in-work-from-anywhere-will-lead-to-more-outsourcing-thats-an-opportunity-for-tcs-infosys-and-hcl-tech/articleshow/77864248.cms">have the most to gain from this wave</a>, according to Goldman Sachs. Going forward, Accenture expects new deals to grow even further. Everybody wants to be on the cloud — but who’s going to put them there? Accenture credits its ramp up of new bookings to the growth of cloud adoption. Going forward, it expects its revenue from cloud services, which accounts for around 30% of its revenue, to grow in double-digits. The company also invested $3 billion to create more assets to accelerate cloud migration. However, it was suggested that Accenture is facing the same issue as the Indian IT services companies — a lack of talent. “The management sounded caution on the supply front, suggesting there is a scarcity of Cloud talent in the market,” noted Motilal Oswal. Picking up new businesses on the cheap Just like Accenture, these four Indian IT services giants have been on the road to pick up businesses on the cheap and bolster their digital services. The global IT giant closed 10 acquisitions this quarter that cost Accenture around $500 million. By September next year, it expects to dole out another $1.2 billion as the trend of consolidation continues. SEE ALSO: <a href="https://www.businessinsider.in/tech/enterprise/news/wistron-apple-iphone-manufacturer-could-face-these-penalties-if-found-guilty/articleshow/79790319.cms">If investigators find Wistron management guilty, here's what is at stake for the company</a>

TCS, Infosys, HCL Tech and Wipro are riding on Accenture's high

<ul><li>New <keyword id="2896546" type="PERSON" weightage="20" keywordseo="H1-B-visa-rules">H1-B visa rules</keyword> have been an unwelcome change for Indian IT firms with new visas as well as renewals, according to data by Centre for Immigration Studies. </li><li>Homegrown IT majors TCS and <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword> faced maximum rejections for extension of the work work visas. </li><li>According to the US Department of Labour, Deloitte Consulting and Apple received the maximum work permits. </li><li>Six Indian IT outsourcing companies — TCS, Infosys, Wipro, <keyword id="28721" type="CITY" weightage="20" keywordseo="Cognizant">Cognizant</keyword>, HCL and US arm of Tech Mahindra — got only 2,145 work permits, which was 16% of total work visas bagged by companies.</li></ul>Under the Trump administration, <a href="https://www.businessinsider.in/h-1b-visa-revised-rules-go-into-effect-on-april-1-favouring-advanced-degree-applicants/articleshow/67768709.cms">new H1-B visa rules</a> have brought new challenges for applicants of these temporary work visas, heavily used by Indian IT majors. Now, it appears that renewal of these work visas has also thrown up hurdles, particularly hurting Indian IT majors. According to the Centre for Immigration Studies, a US-based think tank, top IT firms Tata Consultancy Services (TCS), Cognizant and Infosys faced the most <a href="https://tech.economictimes.indiatimes.com/news/corporate/indian-it-firms-see-higher-h-1b-visa-extension-rejections-us-firms-get-more-visas/68310179">rejections </a>in extension of H1-B work visas in 2018. H1-B work visas are initially provided for three years — but can be extended for a similar term later. With most of its workforce in India, Cognizant witnessed nearly 3,548 rejections for extension of these work visas in the year, which is so far the highest for any company hiring foreign employees. While the homegrown ITs Infosys and TCS saw 2,042 and 1,744 rejections, respectively, said the report. Analysing a broader range of top 30 IT companies, the analysis also found that the six major outsourcing companies — TCS, Infosys, Wipro, Cognizant, HCL and US arm of Tech Mahindra — constitute nearly two-third of extensions for work visas. The six outsourcing companies got only 2,145 work permits, which is 16% of total work visas bagged by all companies. On the flipside, several US-based technology companies — Microsoft, Amazon and Apple-- were able to increase their foreign work staff via the new H1-B rules, showing the new regulation in fact benefitted the American companies, noted the report. A<a href="https://trak.in/tags/business/2019/02/16/deloitte-apple-grab-most-number-of-h1b-visas-hcl-only-indian-company-in-top-10-list/">ccording to</a> data with the the US Department of Labour, Deloitte Consulting and Apple received the most number of H1-B visas, while only HCL from India made it to the top 10 list with a total of 5,085 certifications in US. However, many legal experts point that Indian ITs are the largest consumers of H1-B visa. But recent moves by the US government point to growing protectionism. Indian IT companies have also faced backlash by locals for allegedly discriminating against American workers. On Thursday, alleging discrimination at workplace, a US employee filed a <a href="https://economictimes.indiatimes.com/tech/ites/its-cognizants-turn-to-face-us-lawsuit-alleging-discrimination/articleshow/68296041.cms">lawsuit</a> against Cognizant for calling an American a ‘diversity candidate.’ “Protectionism happens without making any policy changes to favour their own companies. This slant is not unusual. This has happened under President Barack Obama, not just under Donald Trump,” ET<a href="https://economictimes.indiatimes.com/nri/visa-and-immigration/h-1b-extension-rejections-rob-indian-it-firms-of-visa-power/articleshow/68312136.cms"> reported</a> citing Sid Pai, founder of Siana Capital, who has led outsourcing deals of over $ 20 billion in the past. See also: <a href="https://www.businessinsider.in/h-1b-visa-revised-rules-go-into-effect-on-april-1-favouring-advanced-degree-applicants/articleshow/67768709.cms">New H-1B rules to go into effect on April 1, visas for advanced degree holders expected to jump 16%</a> <a href="https://www.businessinsider.in/trump-may-have-an-ugly-surprise-for-h-1b-applicants-and-indian-it-companies/articleshow/67552613.cms">Trump may have an ugly surprise for H-1B visa applicants</a> <a href="https://www.businessinsider.in/indians-seeking-uk-visa-will-now-have-to-shell-out-a-lot-more/articleshow/67435527.cms">Indians seeking UK visa will now have to shell out a lot more</a>

New H1-B rules bring more rejections on work visa renewals

The growth slowdown of the past few years doesn't seem to have taken the edge off India Inc’s appetite for profit. As many as 18 companies are poised to join the club of those reporting $1 billion in net income in FY14, the highest in the past six years, keeping the rupee-dollar rate constant at current levels. While this is just one more than last year, the number is significant in the context of India’s prolonged slump. ONGC and <keyword id="6355199" type="CITY" weightage="40" keywordseo="Reliance-Industries">Reliance Industries</keyword> occupy the top two berths in that order while <keyword id="6357585" type="CITY" weightage="40" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> replaces Coal India at the third place that it occupied last year. According to an ETIG analysis, 18 companies are expected to cross Rs6,100 crore or $1 billion in profit in FY14 against only four in FY08. 
 The tally is also higher than the 13 companies that made it to the $1 billion club in FY08 even after considering the rupeedollar rate of 40 prevailing at the end of that fiscal year. “Inflation, rupee depreciation and commodity price increases, while hurting the <keyword id="34412" type="ORGANIZATION" weightage="40" keywordseo="economy">economy</keyword>, have also benefited certain sectors," said P Phani Sekhar, fund manager, portfolio management services, Angel Broking. Sekhar added that consumer-facing businesses have benefited from price increases. “One of the primary characteristics of the inflationary conditions that prevailed from 2009-14 has been the propensity to consume at the altar of savings.” 
 
The nature of companies that are members of the club has also changed significantly over the years. In FY08, of the four companies that crossed Rs6,100 crore in profit, three belonged to the public sector with RIL being the only non-state entity. In FY14, 13 out of 18 companies will likely be from the private sector. “In the last 5-6 years (since FY08), Indian domestic manufacturing industry has suffered a slowdown,” said Sachin Shah, fund manager, Emkay Investment Managers. 
 
 
 
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 “On the other hand, the domestic services sector and export-oriented businesses have done reasonably well. And this is the primary reason why companies like ONGC, RIL, <keyword id="45179" type="CITY" weightage="40" keywordseo="NTPC">NTPC</keyword> have taken a back seat and companies like TCS, Infosys, <keyword id="10862" type="CITY" weightage="40" keywordseo="Wipro">Wipro</keyword>, <keyword id="42747" type="CITY" weightage="40" keywordseo="Tata-Motors">Tata Motors</keyword> (JLR), HDFC Bank, <keyword id="6653" type="CITY" weightage="40" keywordseo="ICICI-bank">ICICI Bank</keyword> have done reasonably well.” 
 Considering the rupee’s appreciating trend and the expectation of a recovery in the domestic economy after the general elections, some analysts believe the number of billion dollar profit companies will be maintained in FY15. “I don't see any reason why the number of Indian companies reporting $1 billion or more of profits per annum should fall given that the <keyword id="6356076" type="UNKNOWN" weightage="40" keywordseo="indian-economy">Indian economy</keyword>, even in a recession, continues to grow at 13% per annum (on a nominal basis),” said Saurabh Mukherjea, CEO, institutional <keyword id="45369" type="CITY" weightage="40" keywordseo="equities">equities</keyword>, Ambit Capital. “If anything, given that the informal segment of the economy is being relentlessly squeezed by better organized, listed companies, we should see a sharp pick-up in billion dollar or more profit reporters in the years ahead.” 
 A sustained growth revival could see more companies joining the club in subsequent years. “We are expecting 16% earnings growth in <keyword id="6484188" type="CITY" weightage="40" keywordseo="Sensex">Sensex</keyword> earnings for FY15, (so) $1 billion PAT (profit after tax) companies would largely remain the same," said Rikesh Parikh, vice-president, institutional corporate broking, Motilal Oswal Securities. “However, afew more companies could make their mark in FY16 in case of economic revival.” The top three IT companies, including TCS, Infosys, and Wipro, will figure in the list for FY14 as well following sustained momentum in global IT outsourcing demand and the weaker rupee. 
 “Export-oriented sectors such as IT have benefited from 33% depreciation in the rupee against the dollar," said Sekhar of Angel Broking. Bharat Heavy Electricals (<keyword id="6354446" type="CITY" weightage="40" keywordseo="BHEL">BHEL</keyword>) is likely to miss the list this time around, considering the public sector electrical engineering giant’s poor show in the first nine months of FY14, when net profit halved to Rs 1,616 crore from Rs 3,377 crore a year earlier. It’s unlikely that the company will be able to exceed last year's profit of Rs 6,614 crore. Axis Bank is expected to debut in the club in FY14, given its double-digit net profit growth in each of the three quarters of the fiscal year so far. It has clocked a profit ofRs4,375 crore in the nine months and is likely to cross the Rs6,100 crore mark by the end of the March quarter.

In FY14, 18 Companies To Join Group Reporting $1 Billion And More In Net Income, The Most In 6 Years

The United States on Thursday announced that it will modify the selection process for H-1B visa, giving priority to salary and skills instead of the current lottery procedures. The final rule to be published in the federal register on January 8, officials said, is aimed to protect the economic interests of US workers and better ensure the most highly skilled foreign workers benefit from the temporary employment programme. The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. Modifying the H-1B cap selection process will incentivise employers to offer higher salaries, and/or petition for higher-skilled positions, and establish a more certain path for businesses to achieve personnel needs and remain globally competitive, said <keyword id="368921" type="COMPANY" weightage="20" keywordseo="US-Citizenship-and-Immigration-Services">US Citizenship and Immigration Services</keyword>. The final rule will be effective 60 days after its publication in the Federal Register. The next H-1B visa filing season is slated to start on April 1. "The H-1B temporary visa programme has been exploited and abused by employers primarily seeking to fill entry-level positions and reduce overall business costs," said <keyword id="137642" type="COMPANY" weightage="20" keywordseo="USCIS">USCIS</keyword> Deputy Director for Policy Joseph Edlow. "The current H-1B random selection process makes it difficult for businesses to plan their hiring, fails to leverage the programme to compete for the best and brightest international workforce, and has predominantly resulted in the annual influx of foreign labor placed in low-wage positions at the expense of US workers," he said. This effort will only affect H-1B registrations (or petitions, if the registration process is suspended) submitted by prospective petitioners seeking to file H-1B cap-subject petitions. It will be implemented for both the H-1B regular cap and the H-1B advanced degree exemption, but it will not change the order of selection between the two as established by the H-1B registration final rule, USCIS said. The <keyword id="134917" type="COMPANY" weightage="20" keywordseo="department-of-homeland-security">Department of Homeland Security</keyword> had previously published a notice of proposed rulemaking on November 2, 2020. It carefully considered the public comments received before deciding to publish the proposed regulations as a final rule, USCIS said. According to the final rule, a version of which was released by Department of Homeland Security, Instead, a registration system that faithfully implements the Immigration and Nationality Act (INA) while prioritising registrations based on wage level within each cap will incentivize H-1B employers to offer higher wages, or to petition for positions requiring higher skills and higher-skilled aliens that are commensurate with higher wage levels, to increase the likelihood of selection and eligibility to file an H-1B cap-subject petition. Moreover, it will maximize H-1B cap allocations, so that they more likely will go to the best and brightest workers; and it will disincentivise abuse of the H-1B programme to fill relatively lower-paid, lower-skilled positions, which is a significant problem under the present selection system, it said. "While administering a random lottery system is reasonable, it is inconsiderate of Congress's statutory purposes for the H-1B program and its administration," said the final rule. The changes in this final rule will apply to all registrations, including those for the advanced degree exemption, submitted on or after the effective date of the final rule. As per Congressional-mandated cap, USCIS in one year can issue a maximum of 65,000 H-1B visas. It can also issue another 20,000 H-1B visas to those foreign students who have completed higher studies from a US university in STEM subjects. During the public notice period, the department said, several commenters expressed support for the rule and the need to stop visa fraud, abuse, and flooding of petitions by certain staffing or consulting companies. One commenter said the proposed rule would disincentivize companies from abusing the H-1B programme and harming US workers. Other commenters said the proposed rule would decrease potential visa abuse by employers and make sure all workers were paid according to their skillset as employers no longer would be able to lower labor expenses by hiring foreign workers. Another said that the proposed rule would have a positive impact on US employees and college educated US citizens who take out loans for their education by making it harder for technology companies to discriminate against US citizens; US workers are being laid off in large numbers because corporations are outsourcing for profits; and the proposed rule is necessary because Indian corporations are acquiring US jobs, it said. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/tcs-ongc-tata-power-punjab-national-bank-nhpc-and-other-top-stocks-to-watch/articleshow/80164057.cms" data-type="tilCustomLink">TCS’ market share, ONGC’s borrowing, Tata Power gets new territories⁠— these and other top stocks to watch</a> <a href="https://www.businessinsider.in/tech/news/whatsapp-is-forcing-users-to-share-personal-data-with-facebook-and-elon-musk-is-urging-people-to-switch-to-signal-a-smaller-encrypted-messaging-app/articleshow/80156317.cms" data-type="tilCustomLink">WhatsApp is forcing users to share personal data with Facebook, and Elon Musk is urging people to switch to Signal, a smaller encrypted messaging app</a>

US to modify H1B visa selection process — wages, skill level to get priority over lottery system

<keyword id="3746" type="COUNTRY" weightage="20" keywordseo="Mexico">Mexico</keyword> Government has eased its rules and now it will be easier for foreign firms in the country to hire highly-skilled workers from abroad. 
 This step gains significance amidst uncertainty regarding <keyword id="6358043" type="UNKNOWN" weightage="20" keywordseo="H1B-visa">H1B visa</keyword> process in the <keyword id="6356955" type="COUNTRY" weightage="20" keywordseo="united-states">United States</keyword> after <keyword id="6354484" type="PERSON" weightage="20" keywordseo="Donald-Trump">Donald Trump</keyword> government decided to <a href="http://www.businessinsider.in/trump-in-no-mood-to-spare-immigrants-goes-after-dependent-spouses-of-h-1b-visa-holders/articleshow/57537572.cms">change the laws</a> that allow firms to outsource and hire people from foreign lands. 
 
Also read: <a href="http://www.businessinsider.in/indian-engineers-arent-justthreatened-by-trump-heres-the-biggest-threat-ever/articleshow/57218483.cms">Indian engineers aren’t just threatened by Trump. Here’s the biggest threat ever</a> 
 
New rules introduced by the Mexican government will encourage more and more Indian companies to set up their units there. As of now, 11 Indian IT firms, including TCS, Infosys and <a href="http://www.businessinsider.in/this-is-how-wipro-is-planning-to-challenge-hul-and-pg/articleshow/57311481.cms">Wipro</a> have their offices in the North American country. 
 
Also read: <a href="http://www.businessinsider.in/TCS-Infosys-Wipro-rush-to-hire-Americans-fearing-tighter-U-S-visa-regime-under-Trumps-presidency/articleshow/55660189.cms">TCS, Infosys, Wipro rush to hire Americans, fearing tighter U.S. visa regime under Trump’s presidency</a> 
 
"Mexico follows a rule that foreign firms can employ 10 per cent of total highly-skilled staff from abroad and the rest of the employees with similar skills have to be locals. However, Mexico is changing rules which will enable foreign firms to employ a higher proportion of highly-skilled workforce if they are employing a large number of employees," Mexican ambassador to India Melba Pria told ET. 
 
Also read: <a href="http://www.businessinsider.in/There-are-16-million-immigrant-Indians/articleshow/50576716.cms">There are 16 million immigrant Indians, the largest in the world</a> 
 "This could benefit Indian software giants and other business enterprises which are seeking to expand footprint not only in Mexico but also in the US, Central America and <keyword id="48890" type="COUNTRY" weightage="20" keywordseo="Latin-America">Latin America</keyword>. Mexico is always open for <keyword id="1082276" type="UNKNOWN" weightage="20" keywordseo="foreign-talent">foreign talent</keyword>." 
 
Mexico ranks third in the world in the number of IT professionals after India and the Philippines. 
 
Also read: <a href="http://www.businessinsider.in/poor-pay-hikes-and-slow-career-growth-force-indian-techies-to-demand-easier-resignation/articleshow/57427987.cms">Poor pay hikes and slow career growth force Indian techies to demand easier resignation</a> 
 
"Besides software, Mexico presents a unique opportunity for India's world-class pharmaceutical companies. Mexico has a universal healthcare system," Pria added. 
 
On the other hand, Mexican companies have also started investing in India in the automotive, chemicals and entertainment sectors, says a note of external affairs ministry. 
 
(Image source: PR Web)

Amidst visa uncertainty in US, Mexico encourages firms to hire foreign talent

The <keyword id="6484188" type="DEFINITION" weightage="20" keywordseo="sensex">Sensex</keyword> closed at an all-time high of <a href="https://www.google.com/search?q=sensex&amp;rlz=1C1GCEU_enIN820IN820&amp;oq=sensex&amp;aqs=chrome..69i57j69i60j0j69i61l2j0.2417j0j7&amp;sourceid=chrome&amp;ie=UTF-8">39,084 points </a>yesterday, as strong expectations of a rate cut and continued liquidity support by the Reserve Bank of India along with a surge in foreign portfolio investments drove a week-long rally. By the end of this year, the Sensex would have been in operation for 33 years. The index of the 30 largest stocks on the Bombay Stock Exchange first came into being in 1986 with 1979 being set as its base year. The title itself is a combination of the words “sensitive” and “index”. These were the original companies when the Sensex was first compiled. <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">ACC </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Kirloskar Cummins </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Ballarpur Industries </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Premier Automobiles </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Century Textiles </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Hindustan Motors </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Bombay Dyeing </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Mahindra &amp; Mahindra </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Reliance Industries </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Mukand Iron </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Grasim </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Bharat Forge </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Indian Rayon </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Guj. State Fertilizers </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Great Eastern Shipping </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Indian Organics </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Siemens </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Hindustan Lever </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Peico Electronics </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">GSK </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Tata Power </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Nestle </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Tata Steel </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Ceat </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Hindustan Aluminium </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Voltas </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Tata Motors </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;">Indian Hotels </td></tr><tr><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">Larsen &amp; Toubro </td><td style="border-left:solid #000000 2.25pt;border-right:solid #000000 2.25pt;border-bottom:solid #000000 2.25pt;border-top:solid #000000 2.25pt;vertical-align:bottom;background-color:#ffff00;padding:2pt 2pt 2pt 2pt;">ITC </td></tr></tbody></table> These were largely industrial companies, the leaders in sectors like metals, chemicals, cement and engineering. In fact, 27 of these companies were manufacturers. There wasn’t a single technology company or bank. In July 1990, the Sensex finally reached <a href="https://economictimes.indiatimes.com/markets/stocks/news/digest-this-sensex-grew-390-times-in-40-years/tracing-the-growth-timeline/slideshow/68685220.cms">1000 points</a> after starting w<keyword id="6354185" type="UNKNOWN" weightage="20" keywordseo="IT">it</keyword>h 100 points in 1979. It reached the 3000 point mark in January 1992. But how? 
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 In December 1991, financial <keyword id="150139" type="PERSON" weightage="20" keywordseo="liberalisation">liberalisation</keyword> happened. The reforms ushered in by the Congress government - at the behest of the World Bank and IMF - led to a dismantling of foreign investment and trade restrictions, a deregulation of capital markets and also made the economy more service-oriented. The Sensex started the year 2000 at just over <a href="https://www.google.com/search?q=sensex&amp;rlz=1C1GCEU_enIN820IN820&amp;oq=sens&amp;aqs=chrome.0.69i59j69i60l3j69i57j69i61.829j0j7&amp;sourceid=chrome&amp;ie=UTF-8">5,400 points</a> and since then has amassed nearly 34,000 points, crossing 10000 points in February 2006 amid a boom in global commodity markets, and 20000 points in December 2007. Growth slowed down amid the <keyword id="6371665" type="UNKNOWN" weightage="20" keywordseo="financial-crisis">financial crisis</keyword> and the sluggishness of the UPA-II tenure. In fact, as a result of the global financial crisis struck, the Sensex went back to 9,328 points by the end of 2008. However, aided by monetary easing and liquidity support from central banks in developed countries, the index recovered slowly in the years since the financial crisis. It finally crossed the 25000 point mark in May 2014 after the BJP won national elections. The index crossed the 30,000 mark less than a year later and 35,000 mark in January 2018. As of today, a mere 7 stocks that were on the index at the point of its inception have remained. These are <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Industries, ITC, HUL, Larsen &amp; Toubro, Mahindra &amp; Mahindra, <keyword id="8555" type="CITY" weightage="20" keywordseo="Tata">Tata</keyword> Motors and Tata Steel. But what changed since the Sensex was first compiled? It incorporated companies from service industries like banking, telecom and IT while scrapping failing ones like Ballarpur Industries, a paper manufacturer whose product sales lagged owing to increasing digitisation, and Great Eastern Shipping. The rapid development of the information technology (IT) industry in the late 90s and early 2000s saw stocks like Infosys and TCS entering the index, replacing older companies. More significantly, banks and financial services companies make up a third of the stocks on the index - an indicator of the credit boom that has fuelled private investment and consumption by a rising middle class. As a result of liberalisation, India’s largest companies are less dependent on domestic sales and have been deriving a larger bulk of their revenues from <keyword id="35090" type="COMPANY" weightage="20" keywordseo="exports">exports</keyword>. While companies like Infosys benefitted from the IT outsourcing boom, automobile manufacturers like Tata Motors ventured into developed markets like the UK, <a href="https://www.tatamotors.com/press/tata-motors-completes-acquisition-of-jaguar-land-rover/">closing big acquisitions in the process. </a> 
 
 
 
 
 
 
 
 
 
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