Gokul Blog — A conversation on VoIP, IMS, Cisco and Just about Anything

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Indian Stock Market : I get it Now

Posted by tggokul on November 16, 2006

I know where I went wrong  in my previous post titled “Where are the bears” . I had written the following in that post

Once the Democrats win big, there would be a definite ripple effect in the major Indian Software Services companies like Infosys/Wipro whose lifeline is getting outsourced work from US companies. And Democrats have always raised an anti-outsourcing rhetoric and it was only logical that the stocks go down.

I made a fundamental error of going by history rather than the present. Yes, Democrats have traditionally been against this, but the new crop which form the congress are very different and tech friendly.  Nancy Pelosi who is expected to be the next speaker is from the tech crazy silicon valley. She was the incubator for ‘innovation agenda’ that looks at broadband access to all Americans.

Guest visa is one of the pet peeve of the Silicon valley giants and the new representative from California George Miller , who is an outspoken supporter of guest programs, will probably chair the Workforce committee and experts are predicting an increase in the H1B cap.

So no wonder there is positive vibe in the technology sector which has translated to euphoria in Indian software companies ( who also will benefit from the H1B increase). So the bullish run ( which still continues) makes sense.  I now know where the bears are.

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