Shares of IT firms listed on Sensex have lost a combined Rs 2.73 lakh crore since April 2 when US President Donald Trump announced reciprocal tariffs on the country’s trading partners. Four IT stocks-HCL Technologies, Infosys, TCS and Tech Mahindra lost Rs 50,067 crore, Rs 73,138 crore, Rs 1.34 lakh crore and Rs 16,305 crore, respectively as the global economy stares at recession on Trump’s tariffs aimed at promoting manufacturing and lowering the trade deficit in the US.
Hit by the negative sentiment, Nifty IT index slipped to its 17-month low on Monday. It fell to an intraday low of 32,170. The index has fallen 26.43% in 2025 as sentiment around IT companies’ shares turned sour after Trump on January 20 initiated a tariff war against its trading partners. This pulled the global markets lower in anticipation of adverse effect on international trade.
Indian IT companies, a majority of whom are exporters of their services to the US have seen their stocks plunging due to a likelihood of decreased demand for their services and growing risks of a recession.
According to estimates, 49%–62% of Indian IT revenue is derived from the US with the sector remaining vulnerable to ongoing trade tensions and is likely to continue underperforming compared to others.
In the current session, HCL Tech shares slipped 8.28% to an intraday low of Rs 1304. Market cap of the firm fell to Rs 3.64 lakh crore on BSE.
On similar lines, Infosys stock slipped 10% to Rs 1307.10. Mcap of the IT firm slipped to Rs 5.73 lakh crore.
Tech Mahindra stock also fell 8.5% to Rs 1209.70 on BSE. Market cap of the firm fell to Rs 1.23 lakh crore on BSE.
Shares of TCS also were in a downtrend today. TCS stock slipped up to 7.2% in the current session.
Market cap of TCS fell to Rs 11.66 lakh crore on BSE.
Other IT stocks such as LTIMindtree Ltd (3.95%), Wipro (3.17%), Mphasis (6.46%), Coforge (7.12%), Mastek (7.37%), Coforge (7%), Birlasoft (6.75%), Sasken Technologies (10%) and Sonata Software (9%) were the major losers on the BSE IT index today.
Global brokerage Nomura has trimmed its target price for several Indian IT firms by 3-21% as it sees revenue growth to be slower due to uncertainty around US tariffs.
The brokerage firm has reduced the target price of Tech Mahindra, Infosys, Wipro, HCL Technologies, and Tata Consultancy Services by 14%, 12%, 10%, 8%, and 6% to Rs 1,640, Rs 1,950, Rs 300, Rs 1,840, and Rs 3,890, respectively. However, it has kept their rating unchanged – it has ‘buy’ rating on all these companies except TCS, on which it has a ‘neutral’ rating.
IT investors on D-Street have become nervous as says Morgan Stanley sees economic growth in the US slowing to around 2% mark or lower in 2025-2026. The prediction comes as the world finds itself stuck in the tariff war initiated by President Trump.
