Nifty IT Index slips 2.3%; Infosys, TCS, Wipro in the red
Indian IT stocks took a hit today, with the Nifty IT Index dropping over 2% intraday, marking its fourth straight session of losses. Here’s what’s driving the sell-off:
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1️⃣ US Tariff Fears on Outsourced Services
An unconfirmed report suggests President Donald Trump may impose tariffs on remote IT services exported to the U.S. This includes potential levies on remittances and tighter H-1B visa restrictions. Peter Navarro, senior White House trade advisor, amplified calls to tax outsourced services like imported goods, sparking panic across Indian IT counters.
2️⃣ Weak U.S. Labour Data
Disappointing job numbers from the U.S. have raised concerns about sluggish economic growth, which could impact IT spending by American clients—India’s biggest revenue source.
3️⃣ Broad-Based Selling Across IT Majors
All 10 stocks in the Nifty IT Index were in the red.
- Persistent Systems fell nearly 4%
- Mphasis dropped 3.5%
- Infosys, TCS, and Coforge declined 1.5–2%
4️⃣ Volatility Spike & Profit Booking
The India VIX index rose to 11, indicating rising market nervousness. Traders booked profits after recent gains, making IT stocks especially vulnerable.
5️⃣ Overvaluation & Sector Rotation
Analysts flagged stretched valuations in IT stocks and a shift in investor focus toward energy and infra sectors. The Nifty IT Index is already down 20% year-to-date, making it 2025’s worst-performing sector.
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