Tech Stocks React to US Trade Policy Announcements

Following US President Donald Trump's recent tariff announcement, tech stocks experienced significant volatility. Indian IT firms were among the hardest hit, with stocks falling between 3% and 10%. This downturn reflects growing concerns over sluggish growth projections and the potential impact of restrictive trade measures on technology expenditure.

Impact on Major IT Firms

Leading companies such as TCS and Infosys saw their stocks drop by nearly 4% and 3.5% respectively. Mid-tier IT firms, including Persistent Systems and Coforge, faced even steeper declines of nearly 10% and 7.7%. Chirag Kachhadiya of Ashika Stock Broking commented, "The US, contributing over 50% of revenue for large-cap IT companies, remains a critical market. While IT services may not be directly affected by tariffs, broader trade policies could influence overall tech spending."

Looking Ahead

The current macroeconomic uncertainties are expected to pose challenges to growth prospects in FY 26. Investors and industry watchers are closely monitoring developments, as the situation underscores the interconnectedness of global trade and technology sectors.