Shares of information technology stocks led the on-going sell-off as weak global cues weighed on investor sentiment. Infosys and Wipro were among the top losers on the Nifty 50 index, while the Nifty IT index extended losses for the fourth consecutive session, cracking over 1.5 percent.
Global headwinds continue to drag the market sentiment, indicating that volatility is here to stay for the near term. Uncertainty over US trade policy added to the pressure on domestic equities. Market experts fear reciprocal tariffs on Indian exports starting April, could impact multiple sectors.
Further, overnight, Wall Street cracked sharply. President Donald Trump’s tariffs have spooked investors, with fears of an economic downturn driving a stock market sell-off that has wiped out $4 trillion from the S&P 500’s peak last month, when Wall Street was cheering much of Trump's agenda.
The Dow Jones Industrial Average fell 2.1 percent, the S&P 500 lost 2.7 percent and the Nasdaq Composite dropped 4 percent.
At 9.40 am, Infosys, Wipro, Mphasis, Coforge, L&T Technology Services and Tech Mahindra were among the top losers on the Nifty IT index, cracking up to 3 percent.
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With reduced business and consumer confidence, investors are more uncertain regarding the growth outlook of the Indian IT landscape, that depends on US for a large chunk of its revenue.
Experts have been extremely cautious around Donald Trump's threats of tariffs. A barrage of new Trump policies has increased uncertainty for businesses, consumers and investors, notably back-and-forth tariff moves against major trading partners like Canada, Mexico and China.
"Uncertainty unleashed by Trump tariffs is reigning supreme now and this is weighing on markets. Consequently trading volumes have dipped sharply," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
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