Nifty IT Dips 3% as Trump’s 26% Tariff Shakes Indian Exports
The Indian IT sector faced a major setback on April 3 as the Nifty IT index dropped nearly 3% in early trade. This sharp decline came after US President Donald Trump announced a hefty 26% tariff on all Indian exports, raising concerns over the industry’s future growth.
Also Read: Asian Markets Crash as US Slaps High Tariffs on Imports
Mphasis, Coforge, and Persistent Systems Face Heavy Losses
Leading IT companies, including Infosys, TCS, and HCL Technologies, led the decline on the Nifty 50 index. Meanwhile, mid-cap firms such as Persistent Systems, Coforge, and Mphasis witnessed steep falls of up to 8%, driven by fears of lower revenue from US-based contracts.
Revenue Growth Concerns Mount for Indian IT
The Indian IT industry depends heavily on exports to the US. With the newly imposed tariffs, deal closures with American clients may slow down, potentially hurting revenue growth. Analysts predict that this move could impact the sector’s overall performance in the coming months.
Trump’s ‘Kinder’ Tariff Sparks Controversy
On April 2, Trump introduced new reciprocal tariffs, including a 26% duty on Indian exports. Although he described it as a “kinder” measure, his past comments about India being a “tariff king” indicate ongoing trade tensions.
Brokerages Warn of Further Challenges
Global investment firm Morgan Stanley has expressed concerns over India’s IT sector, citing economic uncertainties and technological disruptions. These factors, combined with US policy shifts, could affect valuations and long-term revenue projections.
Nifty IT’s Weak Performance Continues
Investor sentiment remains bearish as fears of a US economic slowdown weigh on Indian IT stocks. The Nifty IT index has already fallen 6% in the past month and 15% over the last six months, erasing significant market value.
Also Read: Stock Market Crash: Trump tariff havoc in stock market, Sensex fell 1100 points
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