TCS, Infosys, Persistent Systems, Coforge Down — IT Stocks Shed Over Rs 1 Lakh Crore In Value

Trump will impose a 10% baseline tariff on all imports to the US and higher duties on some of the country's biggest trading partners. The tariffs will take effect on April 9. Indian goods will see a 26% tariff.

Notably, India's weighted average tariff rate on American imports is 12%, compared to the US' previous rate of 3% on Indian goods.

The IT sector fortunes are highly linked to the US macro environment as discretionary spending by American companies drive IT services demand. A slowdown or even a recession in the US, as projected by experts, will impact Indian software exporters.

While the IT sector is not directly affected by Trump's tariff order, there may be indirect impacts due to slower GDP growth resulting from higher tariffs, Jefferies analysts noted. This could lead to decreased demand from manufacturing, logistics, and retail verticals, despite potential rate cuts.

However, certain IT companies with favourable vertical exposure, such as Tech Mahindra Ltd., HCL Technologies Ltd., Inventurus Knowledge Solutions Ltd., and Sagility India Ltd., may be better positioned. Additionally, IT firms may benefit from potential on-shoring trends and tighter immigration norms in the future, making them more resilient to these risks, Jefferies said.