IT Stocks Dip 2% Amid Tariff Concerns

Shares of major Indian IT companies including Tata Consultancy Services (TCS), HCL Technologies, and Infosys fell by 2% on March 28 as concerns surrounding the latest round of US tariffs, ahead of a key U.S. inflation reading due after Indian market hours, dampened the investor sentiments.

Shares of Wipro, Infosys, LTIMindtree, TCS, and HCL Technologies fell in the range of 1.1% and 2% respectively, while Tech Mahindra, Persistent Systems, and Mphasis were down between 0.5% and 1%. The Nifty IT index was down by 1.3%. The drop can be attributed to the crash in Wall Street and weakness in Asian markets, where equities in Japan and South Korea faced heavy selling, as global investors factored in U.S. President Donald Trump's latest trade tariff announcement.

The slump can also be attributed to the imposition of a 25% tariff on auto imports, which is expected to take effect from next week.

Market participants are also keeping a close watch on the Personal Consumption Expenditures Price Index, which is due later in the day.

“The market’s resilience, despite Trump’s reciprocal tariff threats, comes from the renewed buying by FIIs and the confidence this has given to the bulls,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “However, in this time of heightened uncertainty, investors should remain calm and wait for the dust to settle. FII buying will keep fairly valued large caps resilient.”

Notably, foreign portfolio investors (FPIs) bought Indian equities worth ₹11,111 crore on March 27, the biggest single-day buying in six months. Indian investors will be looking forward to RBI’s monetary policy decision and Q4 earnings.