Coforge, Wipro and other IT stocks fall up to 5% amid escalating U.S.-China trade tensions
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Shares of Indian information technology companies fell sharply on Wednesday, with Coforge, Wipro and other major IT firms declining as much as 5.4%, amid a broader global equity sell-off triggered by renewed U.S.-China trade tensions.
Shares of IT firms, which earn a significant portion of their revenue in U.S. dollars, including Coforge, Wipro, Mphasis, Tech Mahindra and Persistent Systems dropped between 3% and 5.4%. Other IT players like LTIMindtree, Infosys, HCL Technologies and Tata Consultancy Services declined between 1.5% and 3%.
IT firms bore the brunt of the sell-off as sentiment soured globally. Overnight, U.S. stocks plunged on concerns of stagnating growth coupled with inflation — a scenario reminiscent of stagflation — while oil prices slumped to four-year lows.
Meanwhile, investors in India are closely watching the Reserve Bank of India’s monetary policy decision due later on Wednesday. The central bank last cut the benchmark repo rate by 25 basis points to 6.25% in February, and rising economic uncertainty due to global trade tensions has heightened expectations of further easing to support growth.
Also read | Sensex falls 400 pts, Nifty below 22,400 as caution reigns on D-St ahead of RBI MPC outcome, escalating US-China friction
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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The Nifty IT index slid 2.4%, emerging as the biggest drag on benchmark indices, as investors reacted to Washington’s confirmation of steep 104% tariffs on Chinese imports, which are set to take effect after midnight. The tariff escalation, announced by former U.S. President Donald Trump, stoked fears of a protracted trade war and potential global stagflation, rattling equity markets across Asia and Wall Street.
Shares of IT firms, which earn a significant portion of their revenue in U.S. dollars, including Coforge, Wipro, Mphasis, Tech Mahindra and Persistent Systems dropped between 3% and 5.4%. Other IT players like LTIMindtree, Infosys, HCL Technologies and Tata Consultancy Services declined between 1.5% and 3%.
Indian markets tracked the negative global trend, reversing early-week gains. The benchmark Nifty 50 index fell 0.37% to 22,452.1 while the BSE Sensex lost 0.3% to 74,010.03 as of 09:18 a.m. IST.
IT firms bore the brunt of the sell-off as sentiment soured globally. Overnight, U.S. stocks plunged on concerns of stagnating growth coupled with inflation — a scenario reminiscent of stagflation — while oil prices slumped to four-year lows.
Meanwhile, investors in India are closely watching the Reserve Bank of India’s monetary policy decision due later on Wednesday. The central bank last cut the benchmark repo rate by 25 basis points to 6.25% in February, and rising economic uncertainty due to global trade tensions has heightened expectations of further easing to support growth.
Also read | Sensex falls 400 pts, Nifty below 22,400 as caution reigns on D-St ahead of RBI MPC outcome, escalating US-China friction
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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