Indian IT stocks drop nearly 3% on global recession fears

LTM

09/04/2025 05:50

** IT stocks .NIFTYIT drop 2.9% as Trump tariffs stoke global recession fears; biggest loser among sectoral indexes

** Jefferies downgrades market leader and top weight Tata Consultancy Services TCS.NS to "hold" from "buy"

** Lowers LTIMindtree LTIM.NS and Mphasis MBFL.NS to "hold" from "buy"; cuts Wipro WIPR.NS to "underperform" from "hold"

** Says IT stocks, which earn a major chunk of revenue from the U.S., unlikely to re-rate unless U.S. GDP outlook improves

** Prefers Infosys INFY.NS, Coforge COFO.NS and health tech services provider Sagility India SAGI.NS in a high uncertainty environment where demand will be hurt

** All 10 NIFTYIT stocks in the red; WIPR, down 4.7%, biggest pct loser

** Five stocks on NIFTYIT rated "hold", four "buy", per data compiled by LSEG

** YTD, NIFTYIT sheds 26%

 (Reporting by Nandan Mandayam in Bengaluru)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))