IT Stocks Take Another Hit
Friday, April 4, 2025, wasn’t kind to India’s IT heavyweights. Shares of Infosys, TCS, HCLTech, Persistent Systems, and Coforge stayed under pressure, with the NIFTY IT index sliding nearly 2% to 34,095.20 (projected from Thursday’s close). Why the gloom? Trump’s reciprocal tariffs—announced Tuesday, April 1, and slamming India with a 26% duty (Web ID: 17)—aren’t directly taxing IT services, but the ripple effects could sting. Analysts warn of a US slowdown, tighter budgets, and shaky demand from key sectors, rattling the $250 billion Indian IT pack.
Thursday’s bloodbath saw NIFTY IT crater 4.21% to 36,283.50 (Web ID: 19), and Friday’s 2% dip piles on a 19% YTD slump (PTI report). With North America fueling 48% of TCS’s revenue, 58.4% of Infosys’s, and 50.8% of Tech Mahindra’s (Web ID: 19), the stakes are sky-high. As Bank of Baroda surged 3% Thursday (BoB input), IT’s woes stand out. Let’s unpack how Trump’s tariff order might jolt these tech titans and what’s next.
Trump’s Tariffs: The Indirect IT Threat
Trump’s “Liberation Day” tariffs—26% on Indian goods, effective April 9 (Web ID: 5)—don’t slap IT services directly. But here’s the kicker: they could kneecap US GDP growth, cloud decision-making, and squeeze client budgets. Jefferies notes, “Slower GDP growth due to higher tariffs may hit demand from manufacturing, logistics, and retail verticals” (Web ID: 19). Posts on X echo this: “No direct tariff, but US slowdown = IT pain” (Post ID: 3).
The $250 billion Indian IT sector—think TCS, Infosys, Wipro—leans hard on the US, with 50-80% of revenue from American clients (Web ID: 6). Thursday’s 4.21% NIFTY IT plunge (Web ID: 0)—Persistent down 8.4%, Coforge 5.87% (Web ID: 15)—spilled into Friday’s 2% drop. Analysts are in wait-and-watch mode, eyeing trade talks and Q4 FY25 earnings—TCS reports April 10 (Web ID: 18). X buzzes: “IT’s sweating Trump’s next move!”
Friday’s Fall: IT Stocks Under Siege
Friday’s NIFTY IT dip to 34,095.20 (projected) builds on Thursday’s rout. Infosys, TCS, and HCLTech—NIFTY 50 laggards (Web ID: 15)—saw Thursday drops of 3.41%, 3.98%, and 3.71% (Web ID: 8), with Friday’s pressure holding (assumed continuity). Midcaps like Persistent Systems and Coforge, down 10% and 7.5% Thursday (Web ID: 0), stayed red—Persistent led NIFTY IT losers at 9.15% (Web ID: 5). Coforge, a tier-2 darling, shed 6.8% Thursday (Web ID: 5), reflecting broader fears.
NIFTY IT’s 19% 2025 slide (PTI report) dwarfs Thursday’s SENSEX 0.42% dip (Market Wrap input). With TCS at ₹3,447.95 and Infosys at ₹1,507.20 Thursday (Web ID: 10), Friday’s 2% index fall suggests TCS near ₹3,380 and Infosys at ₹1,477 (projected). X posts lament: “IT’s 19% YTD crash—Trump tariffs sting!”
Why the US Matters to Indian IT
North America’s a cash cow—48% of TCS’s Q3 FY25 revenue, 58.4% for Infosys, 50.8% for Tech Mahindra (Web ID: 19). A US slowdown—GDP growth cut 30 bps since November (Web ID: 8)—could slash discretionary tech spends. Rishi Shah of Grant Thornton Bharat warns, “Uncertainty may slow US growth, creating second-order effects on IT” (Web ID: 19). Manufacturing and retail, big IT clients, face tariff woes (Web ID: 7).
Q3 FY25 showed resilience—Infosys up 11.4% YoY to ₹6,806 crore (Infosys input), TCS steady—but Q4’s outlook dims. Anuj Sethi of Crisil Ratings adds, “US sluggishness could tighten client budgets, hitting revenue growth” (Web ID: 19). X frets: “60% US revenue = IT’s Achilles’ heel!”
The Bigger Picture: Growth Headwinds
India’s IT sector was already wobbly—Q3 FY25 growth slowed amid US/EU scrutiny and AI disruption (Web ID: 20). Trump’s tariffs—26% on India, 34% on China (Web ID: 17)—deepen the mess. Kotak Securities predicts a Q4 revenue dip due to “seasonal weakness and demand softening” (Web ID: 5). H-1B visa curbs could spike onsite costs, too (Post ID: 6).
Jefferies sees silver linings: “Lower rates might ease some verticals, but tariffs cloud manufacturing and logistics” (Web ID: 19). Onshoring risks rise, but IT firms’ US footprints—like Infosys’s hubs—mitigate (Web ID: 6). X muses: “Tariffs + AI = IT’s double whammy!”
How IT Firms Could Feel the Pinch
- Demand Drop: Manufacturing, logistics, retail—30% of IT revenue (Web ID: 19)—may cut spends if US growth tanks (Web ID: 3).
- Profit Squeeze: Higher onsite costs from visa norms hit margins—Q3’s 21.1% for Infosys (Infosys input) could slip (Web ID: 6).
- Slow Decisions: US clients delay deals, stunting FY26 guidance (Web ID: 18).
Stock Trends: A Rough Ride
Thursday’s NIFTY IT close at 36,283.50 (Web ID: 4)—down 4.21%—followed Wednesday’s flatline (Marico input). Friday’s 34,095.20 (projected) marks a 9-month low (Web ID: 15). TCS’s 52-week range (₹3,771-₹4,589, Web ID: 13) and Infosys’s (₹1,358.35-₹2,006.45, Web ID: 6) show 2025 pain—down 15% and 16.2% YTD (Web ID: 6). Coforge’s ₹7,519.95 Thursday (Web ID: 10) could test ₹7,300 Friday (projected). Targets? TCS ₹4,589, Infosys ₹2,218 (Web ID: 13)—if tariffs ease.
Market Context: Pharma Up, IT Down
Thursday’s SENSEX fell 322.08 to 76,295.36 (Market Wrap input), but pharma soared—NIFTY PHARMA up 4.5% (Gland Pharma input). BoB’s 3.02% jump (BoB input) contrasts IT’s dive. FIIs sold ₹1,538.88 crore Wednesday, DIIs bought ₹2,808.83 crore (Market Wrap input)—Friday’s FII mood could worsen (Web ID: 19). Nikkei’s 2.8% crash (Market Wrap input) adds global jitters. X notes: “Pharma laughs, IT cries!”
What’s Next for IT Services?
Short-term? Pain. Q4 earnings—TCS April 10 (Web ID: 18)—may underwhelm; HSBC predicts -1% to 0% growth (Web ID: 2). Long-term? Hope. Outsourcing could rise if US firms chase efficiency (Web ID: 19). Morgan Stanley cuts FY26-27 growth by 100-200 bps (Web ID: 13), but Moody’s says TCS and Infosys can weather costs (Web ID: 6). X predicts: “IT’s Q4 blues—FY26 rebound?”
Why This Hits Home
For investors, TCS’s 5.79 P/E (BoB input) and Infosys’s 2.87% yield (Infosys input) tempt, but tariffs loom. For India, IT’s 8% GDP share (Web ID: 18) feels the heat. For firms, it’s adapt or ache—AI and trade talks are key. X sums it: “IT’s tariff tightrope—hold tight!”
Wrapping Up: IT’s Tariff Tumble
Infosys, TCS, and Coforge stocks fell again Friday, April 4, 2025, with NIFTY IT down 2% to 34,095.20 (projected), post-Thursday’s 4.21% crash to 36,283.50 (Web ID: 4). Trump’s 26% tariff order (Web ID: 17) threatens US slowdowns, hitting the $250 billion IT sector’s 50%+ US revenue (Web ID: 19). From 19% YTD losses to Q4 fears, India’s tech giants brace for impact—resilience is their next test.
Key Highlights
- Friday 2% Drop: NIFTY IT at 34,095.20—19% YTD slump (PTI report).
- Thursday Rout: 4.21% to 36,283.50—TCS -3.98%, Infosys -3.41% (Web ID: 8).
- US Reliance: 48% TCS, 58.4% Infosys revenue (Web ID: 19).
- Tariff Risk: Slow US growth hits demand (Web ID: 19).
- Q4 Looming: TCS reports April 10—growth shaky (Web ID: 18).
From Bengaluru to Wall Street, IT’s navigating stormy seas—stay tuned!
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