Nifty IT falls over 3% after Trump’s reciprocal tariffs; Persistent, Coforge, TCS, Infosys shares decline up to 6%

Indian IT stocks declined on Thursday, with the Nifty IT index falling nearly 3%, after the US President Donald Trump announced sweeping reciprocal tariffs against major trading partners.

Persistent System shares led the decline among the Nifty IT constituents, falling 6.5%, followed by Coforge shares down over 4% and Mphasis stock price declining over 3%.

Shares of IT behemoths, Tata Consultancy Services (TCS), Infosys and HCL Technologies share price fell over 2% each. Tech Mahindra, LTIMindtree and Wipro shares were also trading more than 1% lower each.

The fall in IT stocks comes amid the broader decline in the Indian stock market following a sell-off in global equities on worries over the economic impact of the trade war. 

US President Donald Trump imposed a 10% baseline tariff on all imports to the US and higher reciprocal tariff rates for countries that have high barriers to US imports. Trump announced a 26% reciprocal tariff on India — half the rate India imposes on US imports.

Trump Tariffs Impact on Indian IT Stocks

US remains the largest revenue-contributing geography for large-cap Indian IT companies, accounting for over 50% of industry revenue, analysts said.

Mohit Gulati, CIO and Managing Partner of ITI Growth Opportunities Fund noted that the Indian IT giants like Infosys, TCS, Wipro, and HCL Technologies have consistently demonstrated resilience, navigating through various macroeconomic and geopolitical challenges over decades.

“From global recessions to trade tensions, these companies have adapted and thrived, leveraging innovation and diversification. The current tariff concerns are just another phase in the cycle — this too shall pass. Long-term investors can rely on their proven ability to weather uncertainties and capitalize on global opportunities,” Gulati said.

Chirag Kachhadiya, Senior Research Analyst at Ashika Stock Broking doesn not expect the Indian IT companies to be directly impacted by the Trump tariffs.

“While we do not expect IT services to face a direct impact from tariffs, restrictive trade policies affecting other sectors and countries could influence overall technology spending. Industries such as BFSI, Automotive, Retail, and Discretionary are particularly vulnerable to these macroeconomic pressures, potentially leading to a further delay in technology investments, which have already been in a holding pattern for the past two years,” said Chirag Kachhadiya.

In the current environment, from a long-term perspective, he recommends TCS stock to buy, as the IT stock has corrected by 20% over the past four months, making its valuation more reasonable although not cheap. It is currently trading at 22x FY27 expected earnings, he said.

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