Nifty IT Falls To Nearly 17-Month Low As Market Crashes Amid Trade War Concerns
Nifty IT index fell over 7% on Monday, hitting a near 17-month low, as stock market crashed amid trade war fears. The shares of information technology services players that depend on US deals for a large proportion of their revenue saw a sharp decline.
The Nifty IT tumbled 7.74% to 30,918.95, the lowest level since November 2023. On the IT index, Coforge Ltd., Mphasis Ltd., HCL Technologies Ltd., Persistent Systems Ltd. and Infosys Ltd. led the decline as of 10:29 a.m.
While Persistent Systems was down 10%, Coforge and Infosys were down over 9%. HCL Tech, LTI Mindtree Ltd., Mphasis and Tech Mahindra Ltd. had fallen over 8%. Tata Consultancy Services Ltd. was also down over 7% on Monday.
The IT sector's fortunes are highly linked to the US macro environment as discretionary spending by American companies drives IT services demand. A slowdown or 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 impact 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.
This also comes as the tech stocks globally have seen a sharp decline. Taiwan's tech-heavy equity benchmark fell as much as 9.8%. The Nasdaq 100 also entered a bear market on Friday.
Expensive valuations, weak earnings, and policy uncertainties following Donald Trump's return as US President for a second term contributed to the decline.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
