In recent years, risk and regulatory compliance-related work has been a growth driver for the BFSI in Indian IT.
Britain’s ruling conservative party, led by Boris Johnson, has won the general election with a thumping majority. A decisive outcome to a Brexit-dominated election should allow Johnson to fulfil his plan to take the UK out of the European Union by January.
Analysts see this as a positive for about two dozen stocks in the auto, pharma and IT sectors that have exposure to the country. The potential unravelling of regulatory changes in the new order could spell opportunity in the form of new business — but only over the medium-to-long term, according to most of the analysts. In recent years, risk and regulatory compliance-related work has been a growth driver for the BFSI in Indian IT. Top Indian software services firms like Tata Consultancy Services, HCL Technologies, Tech Mahindra and Mindtree get 20-40% of revenue from Europe. However, some of the companies which have set up shop in the UK for gaining access to the European markets too, may have to rework their business plans.
Here is a list of some major Indian stocks to watch out for this week which could be impacted by the Brexit deal.
