Infosys, TCS, Tech Mahindra, HCL Tech, Wipro: IT stocks tumble after 'Liberation Day' announcement, check details

Trump tariffs: Shares of IT firms such as Infosys, TCS, Tech Mahindra, HCL Technologies, Persistent Systems, Coforge, Mphasis, Cyient, Wipro, Coforge, Birlasoft and Sonata Software came under severe selling pressure on Thursday after US President Donald Trump imposed reciprocal tariffs on its trading partners including India. 

IT stocks were the top losers today with shares of Infosys (2.64%), TCS (3.13%), Tech Mahindra (3.04%) and HCL Technologies (2.99%) falling the most on Sensex. IT services firms fear that fresh tariff war initiated by Trump was likely to hit demand for IT services from Indian players.

Mphasis (4.25%), Mastek (2.76%), Cyient (2.65%), Coforge (4%), Birlasoft (2.21%), Sasken (2.67%), Wipro (2%), Sonata Software (1%) and LTIMindtree (2.11%) were among the top losers on the BSE IT Index today. 

The Nifty IT index fell 3.35% or 1183 pts in the early trade, tracking weakness in global markets and fears of reduced demand for IT services.

The BSE IT index was the top sectoral loser, falling 1058 points to 34,585 against the previous close of 35,642. 

The IT indices on BSE and NSE were deep in the red, hit by the negative sentiment around the sector on Dalal Street. 

Trump imposed a tariff of 27% on Indian imports and 34% on the neighbouring China. 

Meanwhile, global brokerage Nomura has reduced its target price for several Indian information technology companies by 3-21% as it expects revenue growth to be slower due to uncertainty around US tariffs. 

The brokerage firm has cut the target price of Tech Mahindra, Infosys, Wipro, HCL Technologies, and Tata Consultancy Services by 14%, 12%, 10%, 8%, and 6% to Rs 1,640, Rs 1,950, Rs 300, Rs 1,840, and Rs 3,890, respectively. However, it has kept their rating unchanged – it has ‘buy’ rating on all these companies except TCS, on which it has a ‘neutral’ rating.

According to a commerce ministry official, 10 per cent tariffs will come into effect on imports into the US from April 5, and the remaining 17 per cent from April 10. 

Decoding the impact of tariffs on global markets and the economy,  VK Vijayakumar, Chief Investment Strategist, Geojit Investments said, “The worse-than-expected reciprocal tariffs announced by President Trump will have a negative impact on markets, globally. The biggest concern is that this will trigger retaliatory tariffs from other countries resulting in a full blown trade war, impacting global trade and global growth. Higher inflation in the US will put the Fed in a tight spot; it would be difficult for the Fed to deliver the rate cuts expected by the market in 2025. The probability of a US recession by the end of 2025 has increased. This is bad news for the global economy and markets.”
 
“The exemption given to Indian pharmaceuticals is positive and, therefore, this segment is likely to witness buying. Even in a weak market, domestic consumption driven sectors will be regarded as safe havens by investors. The picture may change, going forward, when countries like India negotiate bilateral trade agreements with the US,” Vijayakumar added.