Indian IT stocks fall on worries over impact to U.S. economy from Trump tariffs

Persistent Systems

03/04/2025 06:03

April 3 - ** Indian IT shares .NIFTYIT down 3.5%

** Index is top sectoral loser among Nifty indexes

** U.S. President Donald Trump slapped a bigger-than-expected wall of tariffs around the world's largest economy, possibly impacting trade and supply chains

** Indian IT companies may see indirect impacts from slower U.S. GDP growth due to higher tariffs, impacting demand from manufacturing, logistics and retail verticals despite U.S. rate cuts - Jefferies

** Revenue growth for IT firms is highly correlated to U.S. real GDP growth - brokerage

** Among large-caps, Tech Mahindra TEML.NS, HCLTech HCLT.NS have strong exposure to manufacturing, retail verticals in U.S. - Jefferies

** The two companies decline 2.7% and 2.5%, respectively

** Persistent Systems PERS.NS down the most by 8.5%, Coforge COFO.NS loses 6.5%
** YTD, IT stocks have fallen 19% vs 1.7% decline in Nifty 50 index .NSEI

 (Reporting by Sethuraman NR in Bengaluru)

 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net ))