Mphasis shares fall 10% in two days as Trump tariffs and visa concerns spook IT sector

Shares of Mphasis Ltd continued their downward spiral on Friday, April 4, declining 4.86% to ₹2,258.65, marking a cumulative fall of nearly 10% in just two sessions. The stock has dropped ₹115.40 from the previous close of ₹2,374.05. This marks one of the steepest two-day slides in recent weeks for the IT major, amid growing concerns over U.S. trade and immigration policy shifts.

The broader IT sector remains under pressure after U.S. President Donald Trump’s announcement of reciprocal tariffs, which slapped a 26% duty on Indian imports. Additionally, potential hikes in H-1B visa fees have raised fears of rising costs and weakened outsourcing margins for Indian tech firms.

Mphasis, which generates nearly 79% of its revenue from the U.S., is among the most vulnerable to these changes. The company has already seen its stock price erode by 10% to 30% in recent months, tracking similar declines in larger peers like Infosys and TCS.

While Indian stocks overall managed to absorb the initial tariff shock relatively better than their Asian peers on Thursday, the Nifty IT index fell over 4.2%, its steepest single-day decline in nearly two years. Analysts have warned that the ripple effects of the U.S. slowdown, driven by tightening trade policies, could impact new deal wins and margins for India’s export-driven IT sector.

With the global demand outlook becoming murkier, investors remain cautious about the short-term prospects for companies like Mphasis. The IT stock is now hovering near the lower end of its 52-week range of ₹2,170.25 – ₹3,237.95, and its market cap stands at ₹428.70 billion.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions.