Tech Stocks Tumble Amid US Tariff Escalation: Impact on Indian IT

Shares of major Indian IT companies like Infosys, Tech Mahindra, and TCS plummeted, following US President Trump's announcement of reciprocal tariffs affecting about 60 countries, including India. Experts fear this move could lead to a trade war, impacting global economic growth and the operations of IT service providers.

Indian IT stocks took a significant hit on Thursday, with major companies such as Infosys, Tech Mahindra, and TCS witnessing their shares fall by up to 9%. This drop follows US President Donald Trump's announcement of reciprocal tariffs affecting around 60 countries, including India.

The BSE IT Index fell by 3.49%, impacting major companies significantly. The Indian market, on the whole, saw declines, with the Sensex falling 305.76 points. Market experts express concern over the potential for these tariffs to spark retaliatory measures, threatening global economic stability.

VK Vijayakumar from Geojit Investments warned that these tariffs might trigger a full-blown trade war, increasing the risk of a recession in the US by 2025. This development casts a shadow over Indian IT firms' prospects, as they may face challenges in securing US business amid escalating international trade tensions.

(With inputs from agencies.)