Dollar strength, Nasdaq correction weigh on Indian IT as LTI Mindtree, Infosys, others drag Nifty IT a percent lower

Stock fall

Shares of leading IT companies were under selling pressure on March 7, with Nifty IT snapping a two-day gaining streak as uncertainty over US President Trump's tariff measures and a weakening US dollar weighed. The Nasdaq index entering into the correction territory also soured the sentiment.

The US dollar index also has seen a consistent downfall in the recent days, adding to the worries of Indian IT companies. The dollar saw its longest losing streak since September, on March 6, contributing to a sudden strength in Indian rupee. The concerns over the impact of tariffs on the American economy has pushed Nasdaq down by nearly 3 percent overnight.

After threatening to impose reciprocal tariffs on large trading partners, including India, President Trump said the barriers will take effect from April 2. However, some concession for automakers were granted for imports into US by delaying the tariffs on Mexico for a month. Trump once again pointed out India for having unfair tariffs.

These uncertainties may likely make investors move away from export-oriented stocks, including IT and pharma.

Mphasis shares were the top loser on the index, falling nearly 2 percent to trade at Rs 2,300. LTI Mindtree and heavyweight Infosys meanwhile dropped over 1 percent in morning trade.

L&T Tech Services, HCL Tech, TechM, TCS, Persistent and Wipro meanwhile were trading with marginal losses in the red.

The shares of Persistent however dodged the trend to trade in the green.