Tech Stocks Drop Amid US Spending Worries
Indian IT Companies Hit by Tariff News
Tech stocks took a dive on Thursday following US President Donald Trump’s tariff announcement. Shares of Indian IT firms dropped between 3% and 10% due to slow growth forecasts and trade restrictions impacting certain sectors, potentially affecting overall tech spending. Rising macroeconomic uncertainties are likely to influence growth prospects in FY 26.
- TCS shares dipped nearly 4%
- Infosys shares slid about 3.5%
- Mid-tier IT firms Persistent Systems and Coforge saw shares plunge nearly 10% and 7.7%, respectively
Effect on Major IT Companies
Chirag Kachhadiya of Ashika Stock Broking stated, “The US is the largest revenue-contributing region for major IT companies, making up over 50% of industry revenue. Although we don’t anticipate a direct impact on IT services from tariffs, restrictive trade policies affecting other sectors and countries could sway overall tech spending.”
