IT Stocks Plunge as Trump's Tariffs Shake Markets

Shares of Indian IT companies dropped significantly following US President Trump's announcement of reciprocal tariffs, affecting up to 60 countries. The tariffs, including a hefty 27% on India, are unsettling for IT firms, though there's no specific mention of the sector. Major IT stocks saw significant declines.

The IT sector witnessed a significant downturn on Thursday as shares plummeted following U.S. President Donald Trump's announcement of reciprocal tariffs on about 60 nations globally, including India. The impact of these tariffs is poised to affect India's export relationship with the U.S., although specific details concerning the IT sector were not provided.

Persistent Systems led the decline, tumbling 9.92% to close at Rs 4,788.20. Not far behind were Coforge, KPIT Technologies, and Tata Consultancy Services, which fell 7.77%, 7.66%, and 3.98% respectively. Tech Mahindra and other notable firms like HCL Technologies and Infosys also posted losses, contributing to the overall slump.

Experts suggest that the trade war now in motion could diminish the demand for Indian IT services. The BSE IT Index dropped 3.78%, while the broader BSE benchmark fell by 0.42%. As the situation develops, IT companies are bracing for the potential impact of these new tariff regulations.

(With inputs from agencies.)