TCS, Infosys, other IT stocks fall up to 3% amid uncertainty over Trump tariffs

Bear roar

The shares of information technology companies tumbled on February 19, pushing the Nifty IT index down by nearly 600 points or 1.38 percent to 40,890.10. Export-focused IT companies including LTI Mindtree, Tata Consultancy Services (TCS) and Infosys were among the top losers on the index.

US President Donald Trump on February 13 had announced reciprocal tariffs in a bid to reduce the US' trade deficit with other countries, starting from early April. This move is expected to make investors to move away from export-oriented stocks, including IT and pharma. Indian IT firms earn a significant share of their revenue from the US.

The shares of LTI Mindtree were the top loser of the index, falling nearly 3.46 percent to trade at Rs 5,472 per share, as seen at 1.32 pm. TCS shares saw a significant decline of nearly 2.63 percent to trade at an 8-month low level of Rs 3,771 per share. The stock is currently hovering near its 52-week low of Rs 3,591.50.

Infosys shares meanwhile dropped nearly 2 percent to trade at Rs 1,816 per share. The stock is currently over 9 percent down from its 52-week-high level of Rs 2,006, which it had hit in December last year.

The shares of L&T Technology Services (LTTS), HCL Tech and Tech Mahindra were also trading the red, recording losses nearing 1 percent.

Also read: Lupin, Dr Reddy's, other pharma stocks fall on Trump's 25% tariff plans

While the export-oriented stocks tumbled, IT stocks that aren't overtly dependent on BFSI recorded gains. Persistent Systems, Mphasis and Coforge were trading nearly 1 percent higher, despite the bearish trend. Shares of Wipro , which is more focused on consultancy, were also trading in the green at Rs 313 per share.