Shares of information technology (IT) firms in India experienced a significant downturn on Thursday, with declines reaching as high as 10%. This plunge follows an announcement by US President Donald Trump regarding new reciprocal tariffs affecting approximately 60 countries, including India. While the specifics regarding the IT sector remain vague, experts believe this move could hinder India’s export capabilities to the United States.
Impact on Major IT Stocks
The stock market reacted sharply, with notable drops in several key IT companies:
- Persistent Systems: Fell by 9.92%, closing at ₹4,788.20.
- Coforge: Decreased by 7.77%, settling at ₹7,157.25.
- KPIT Technologies: Dropped 7.66% to ₹1,212.
- Tata Consultancy Services (TCS): Down 3.98%, ending at ₹3,403.90.
- Tech Mahindra: Declined by 3.79%, closing at ₹1,369.65.
Additionally, other major players also faced losses:
- HCL Technologies: Shares went down 3.71% to ₹1,470.80.
- Mphasis: Fell 4.05% to ₹2,374.30.
- Infosys: Decreased by 3.41%, closing at ₹1,497.
- Wipro: Dropped 2.75% to ₹256.40.
- Cyient: Fell 2.67% to ₹1,217.25.
- Mastek: Slightly down by 0.44% to ₹2,176.80.
From the 30-share Sensex index, TCS, Tech Mahindra, HCL Technologies, and Infosys emerged as the primary laggards, contributing to a broader market decline.
Broader Market Trends
The BSE IT index saw a significant decline of 1,348.57 points, equivalent to 3.78%, closing at 34,293.59. Meanwhile, the overall 30-share BSE benchmark fell 322.08 points, or 0.42%, finishing at 76,295.36.
On Wednesday, Trump highlighted the introduction of 27% reciprocal tariffs on India, justified by high import duties imposed by New Delhi on American products. This escalating trade conflict raises concerns among IT service providers, who fear that the ongoing trade war could diminish the demand for their services from Indian companies.
Conclusion
As the situation evolves, market analysts are keeping a close eye on the implications of these tariffs, wondering how they will affect the future of India’s IT sector. With many companies already feeling the pressure, the coming weeks will be crucial for the industry’s stability and growth.
