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Indian IT giants Infosys, Wipro, and TCS saw sharp declines as uncertainty over Donald Trump’s tariff policies triggered investor concerns
IT Stocks Fall: Infosys, Wipro, TCS Affected by Trump’s Tariff Concerns
IT Stocks Decline Today: IT stocks, including Coforge and Infosys, saw declines of up to 4% in early trading on Tuesday, March 11, as growing recession fears in the U.S. weighed on market sentiment.
Coforge shares dropped by 4%, reaching Rs 7,223.90, while Infosys fell to Rs 1,637.05. Wipro’s stock dropped 2.8%, hitting Rs 273.10. Shares of L&T Technology Services (LTTS), LTIMindtree, Mphasis, Tech Mahindra, TCS, and HCL Technologies saw declines between 1-3%.
The Nifty IT index extended its losses for a fourth consecutive session, shedding up to 2%, making it the worst-performing sector on Tuesday. Nine out of the 10 constituents of the index were in the red.
The only exception was Persistent Systems, which was in the green. Global brokerage firm CLSA upgraded Persistent Systems to a “High-Conviction Outperform,” setting a price target of Rs 9,267. CLSA sees generative artificial intelligence (AI) as a key driver of transformation in the tech industry, believing it will fuel a new tech cycle that will benefit Indian IT services firms.
Why Are IT Stocks Falling?
Global economic pressures continue to impact market sentiment, signaling that volatility is likely to persist in the near term. Uncertainty surrounding U.S. trade policy has further burdened domestic equities, with concerns over potential reciprocal tariffs on Indian exports starting in April, which could affect multiple sectors.
Additionally, Wall Street experienced a sharp decline overnight. Fears over President Donald Trump’s tariffs have spooked investors, leading to an economic slowdown that erased $4 trillion from the S&P 500’s peak last month when investors had been optimistic about much of Trump’s agenda.
The Dow Jones Industrial Average fell 2.1%, the S&P 500 lost 2.7%, and the Nasdaq Composite dropped 4%.
With declining business and consumer confidence, investors are increasingly uncertain about the growth outlook of the Indian IT sector, which heavily relies on U.S. revenue.
Experts are cautious due to the uncertainty surrounding Trump’s tariff threats. His fluctuating trade policies have contributed to increased unpredictability for businesses, consumers, and investors, especially with new tariffs against major trading partners like Canada, Mexico, and China.
“Uncertainty unleashed by Trump tariffs is reigning supreme now and this is weighing on markets. Consequently, trading volumes have dipped sharply,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As of now, the Nifty IT index is trading 1.62% lower at 37,034.90.
