Persistent Systems Leads IT Stocks' Surge As US-China Reach Trade Deal On Tariff Rates
Nifty IT was up 5.96% on Monday as it became the top gainer in sectoral indexes.
IT stocks experienced significant gains following the announcement of a trade deal between the United States and China, which agreed to suspend tariffs on certain goods for 90 days. The agreement, reached after talks in Geneva, will take effect by May 14 and applies to tariffs previously imposed in April 2025.
Among the IT stocks, Persistent Systems Ltd. saw the highest intraday gain, surging by 6.54% to reach Rs 5,799. Mphasis Ltd. followed closely with a 6.4% increase, hitting Rs 2,540. HCL Technologies Ltd. also performed well, rising by 6.19% to Rs 1,666.6.
Infosys Ltd. climbed 6.06% to Rs 1,599, while Coforge Ltd. increased by 5.69% to Rs 8,118. Wipro Ltd. saw a 5.69% rise, reaching Rs 255.77. Other notable gains included LTIMindtree Ltd. at 5.59% to Rs 4,880, Tata Consultancy Services Ltd. at 4.75% to Rs 3,603.6, and Tech Mahindra Ltd. at 4.45% to Rs 1,560.
Nifty IT was up 5.96% on Monday as it became the top gainer in sectoral indexes.
The broader market also reacted positively to the trade deal news. The NSE Nifty 50 surged by 3.31%, reaching 24,803.90, while the BSE Sensex rose by 3.22%, hitting 82,007 as of 01:21 p.m. This rebound reflects investor relief and renewed confidence in the stability of international trade relations.
The agreement between the US and China lowered the total tariff rate on targeted goods from 145% to 30%. Both countries will retain a 10% ad valorem rate while suspending 24 percentage points of their additional tariffs. China will also take steps to withdraw tariffs and suspend or eliminate non-tariff countermeasures imposed since April 2.
The trade agreement followed recent discussions between both governments and reflects an effort to maintain open communication and economic cooperation. China’s Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer led the discussions, which took place in Geneva, Switzerland. The suspension of tariffs is seen as a positive step towards easing trade tensions and fostering a more stable economic environment.
