Infosys, TCS, other IT heavyweights drop 1%, IT index snaps 2-day gaining streak amid weak market

Several IT stocks declined on May 27, pushing the Nifty IT index down into the red to snap its two-day gaining streak and emerge as one of the top sectoral losers. This comes amid an overall downturn in the stock market, with benchmark indices Sensex and Nifty being down over 0.7 percent each in the afternoon.

The Nifty IT index dropped 0.75 percent to close at 37,501.45. The index was only second among the top losing sectors, after FMCG. Tata Consultancy Services (TCS) and HCL Tech were each down 1 percent each, while Persistent Systems, Wipro and Infosys were each down over 0.5 percent each. LTI Mindtree, Tech Mahindra and Mphasis shares ended the session in the red with marginal losses.

Notably, the IT stocks have seen significant volatility in the recent days amid US President Donald Trump’s tariff flip flops. Trump had announced a slew of reciprocal tariffs in April, which was followed by counter measures by several nations. Analysts remained concerned over the possibility of a US recession as inflation was likely to rise after the tariffs.

IT companies, who derive a major portion of their revenue from US, saw a significant decline in the share prices amid the recession fears. However, Trump soon announced a 90-day tariff pause, which reduced recession worries and boosted the IT stocks.