Nifty IT index at 52-week low on Trump’s tariff fueled recession fears

The Nifty IT index dropped over 5 per cent to 52-week low on Monday, April 7, amid stock market crash. Indian equity benchmarks opened lower with a gap-down start and are facing selling pressure on Monday, influenced by negative global cues as the US government remains firm on its broad tariff plans.

In the past three sessions, the IT index has dropped by more than 5,000 points, marking a decline of over 10 per cent. Just four months after reaching a 52-week high on December 13 last year, it has now fallen to a 52-week low.

IT major stocks including Tata Consultancy Services (TCS), Infosys, Mphasis, LTIMindtree plunged up to 8 per cent.

IT stocks

TCS

IT major TCS share price fell over 5 per cent to ₹3,069 wiping out more than ₹60,000 crore in market value. The stock is drawing attention ahead of its March quarter earnings, scheduled to be announced on Thursday, April 10.

Infosys

Infosys share price was down nearly 4.76 per cent to ₹1,382.55 on April 7. The IT major is all set to announce its March quarter earnings on April 17.

Mphasis

Bangalore-based IT firm Mphasis stock plunged over 5.74 per cent to ₹2,101.30 in Monday's intraday session.

LTIMindtree

LTIMindtree share price dropped over 3 per cent to ₹4,005.55 on April 7.

HCL Technologies

Shiv Nadar-founded IT firm HCL Technologies saw its share price decline over 5.74 per cent to ₹1,341.10 apiece amid stock market crash.

Wipro

Bengaluru-based Wipro shares fell over 3.25 per cent to ₹238.30 per share on Monday.

JPMorgan said on Friday that the likelihood of a recession in 2025 has risen to 60%. If a recession occurs in the U.S., it could lead to reduced discretionary spending, potentially affecting IT sector stocks.

The global brokerage firm, in a note, recommended that investors to maintain a modest exposure to the IT sector, cautioning that cautious outlooks could push stocks down before new buying opportunities emerge.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.