Nifty IT crashes 7% as Trump doubles down on tariffs; Infosys, Coforge lead losses, tumbling 10%

The information and technology gauge Nifty IT crashed seven percent during the opening session on April 7, as the global risk-off sentiment hit Indian equities.

Shares of IT services players, that depend on U.S. deals for a large portion of their revenue, crashed sharply, with giants like Infosys, TCS, HCL Technologies leading the losses on the Nifty 50 index.

At 9.15 am, Nifty IT tumbled seven percent. On the IT index, mid-cap tech services players such as Mphasis and Coforge fell by 6 to 9 percent while giant Infosys fell 10 percent.

The sell-off comes amid concerns of sales growth, as these IT players depend on services exports to the U.S. for a large portion of their revenue. Following the imposition on the tariffs, deal wins from America-based clients are likely to slow down, impacting the topline of these firms.

Further, U.S. President Donald Trump has reiterated that he was not concerned about market losses that has already wiped out nearly $6 trillion in value from U.S. stocks. "I don't want anything to go down. But sometimes you have to take medicine to fix something," he said.

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Global markets have crashed sharply on Monday, with S&P 500 futures sliding 4.31 percent in trade, while Nasdaq futures dived 5.45 percent, adding to last week's almost $6 trillion in market losses. Japan's Nikkei sank 7.8 percent to lows last seen in late 2023, while South Korea lost 4.6 percent. Hong Kong's Hang Seng index and the Taiwanese benchmark sank 10 percent.

International brokerage Morgan Stanley suggested that global macroeconomic shifts and technological changes pose rising risks to the domestic information technology sector, potentially impacting valuations and revenue growth.

Given the negative sentiment, IT stocks have been underperforming on fears on US growth slowdown impacting the Indian tech industry. Fears of tariffs have resulted in a broad-based sell-off in the IT index, the Nifty IT gauge has slumped six percent over the past month, nosediving 20 percent over the past six months to wipe of crores in investor wealth.