Indian IT stocks were sharply lower in early trade on Thursday amid rising concerns of a slowdown in U.S. discretionary spending triggered by the Trump administration’s reciprocal tariffs. According to a note from Bernstein, the biggest impact of these tariffs could hit U.S. consumer and enterprise spending—posing risks to Indian IT services demand.
As of 9:19 AM, all major IT names were trading in the red:
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Persistent Systems down 5.38% at ₹5,031.65
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KPIT Technologies down 4.03% at ₹1,259.10
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Coforge down 3.12% at ₹7,519.55
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Mphasis down 2.91% at ₹2,402.35
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HCLTech down 2.59% at ₹1,488.00
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Infosys down 2.40% at ₹1,512.95
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LTIMindtree (LTIM) down 2.28% at ₹4,397.40
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L&T Technology Services (LTTS) down 2.37% at ₹4,525.70
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Wipro down 2.05% at ₹258.20
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TCS down 2.17% at ₹3,466.90
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Tech Mahindra down 2.09% at ₹1,393.30
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Oracle Financial Services (OFSS) down 1.56% at ₹7,645.85
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Tata Elxsi down 1.06% at ₹5,174.75
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Tata Technologies down 0.84% at ₹682.10
Bernstein in its note described the tariff regime as a “historic step toward a new world order,” but warned that it may lead to months of back-channel negotiations. The brokerage also said many of these rates may not last beyond H2 2025, but in the short term, India’s IT sector is at risk due to its exposure to U.S. clients.
As a result, Bernstein downgraded Indian IT to ‘equal-weight’, while upgrading healthcare to ‘equal-weight’ due to its limited impact from these measures.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult a qualified financial advisor before making any investment decisions.