The U.S. has imposed a 26 percent tariff on Indian goods as part of major trade policy overhaul. While these tariffs don’t directly impact the IT sector, they are seen as inflationary, potentially raising prices in the U.S. Notably, if inflation rises, U.S. companies may cut IT budgets, which could hurt Indian IT firms as most of them are reliant on U.S. clients.
Further, Goldman Sachs has raised its recession probability for the U.S. economy to 35 percent over the next 12 months, up from the previous estimate of 20 percent. Rising tariffs could hinder growth, drive inflation higher, and increase unemployment.
The firm has also raised its core inflation forecast to 3.5 percent at the end of the year, up from its prior estimate of 3 percent. GDP growth projection for 2025 has been lowered to just 1 percent, and the year-end unemployment rate estimate has increased by 0.3 percentage points to 4.5 percent.
Here are the IT stocks that took the biggest hit in Thursday’s trading session
Persistent Systems
With a market capitalization of Rs 76,095.32 crore, Persistent Systems Ltd fell over 9 percent on Thursday to an intraday low of Rs 4,828.60 per share compared to its previous closing price.
Persistent Systems is engaged in the business of offering software engineering and strategy services to companies to implement and modernize their businesses.
Coforge Ltd
With a market capitalization of Rs 48,547.70 crore, Coforge Ltd fell 7 percent on Thursday to an intraday low of Rs 7,226.50 per share compared to its previous closing price.
Coforge is an IT services company offering comprehensive software solutions and services. It serves major global clients such as the ING Group, British Airways, SEI Investments, SITA, and Sabre.
KPIT Technologies Ltd
With a market capitalization of Rs 33,873.21 crore, KPIT Technologies Ltd fell over 6 percent on Thursday to an intraday low of Rs 1,231 per share compared to its previous closing price.
KPIT is engaged in providing software solutions for autonomy, sustainability, and connectivity. The company operates development centers across Europe, USA, Japan, China, Thailand, and India.
Mphasis Ltd
With a market capitalization of Rs 45,442.45 crore, Mphasis Ltd fell over 4 percent on Thursday to an intraday low of Rs 2,364 per share compared to its previous closing price.
Mphasis, is engaged in the business of providing cloud and cognitive services, leveraging next-generation technology to drive enterprise transformation worldwide.
Wipro Ltd
With a market capitalization of Rs 2.7 lakh crore, Wipro Ltd fell 3 percent on Thursday to an intraday low of Rs 255.60 per share compared to its previous closing price.
Wipro is a global Information technology, consulting and business process services (BPS) company that operates through 2 segments: IT services and IT products.
Infosys Ltd
With a market capitalization of Rs 6.2 lakh crore, Infosys Ltd fell 3 percent on Thursday to an intraday low of Rs 1,501.90 per share compared to its previous closing price.
Infosys provides technology, consulting and outsourcing services. The segments of the company include retail, financial services, communication, manufacturing and life sciences among others.
Written by Shwetha Sairam
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