Wipro, Infosys, HCL Tech, TCS shares plunge amid US recession fears
Indian IT stocks tumbled sharply on Wednesday, with the Nifty IT index falling 3.59 per cent at 36,057.50 around 11.15 am, as concerns about a potential US recession and trade tensions between the US and Canada rattled global markets.
Wipro and Infosys led the decline with drops of 5.22 per cent and 5.15 per cent respectively. Other major IT companies also posted significant losses, with LTTS down 3.70 per cent, LTIM falling 3.65 per cent, and HCL Technologies declining 3.46 per cent. TCS, India’s largest IT company, fell 1.97 per cent to trade at ₹3,505.
Market experts attribute the sell-off to growing recession worries in the United States, which is the largest market for Indian IT service providers. Recent economic data from the US has contradicted earlier expectations of GDP growth improvement, sparking concerns about the health of the world’s largest economy.
“This is because of US recession worries and the tremors taking place in US markets,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. “Trade tensions rose to an all-time high amidst tariff jitters and conflicting news which added to the volatility in the global markets.”
The slump in US tech stocks is directly impacting Indian IT companies, whose fortunes are closely tied to technology spending in North America. The sector has now declined 12.86 per cent over the past 30 days, with companies like LTIM and Mphasis recording losses of 21.86 per cent and 20.59 per cent respectively during this period.
Investors are now awaiting India’s CPI and industrial production data scheduled for release later today, with estimates pointing to inflation at 4.1 per cent and industrial growth at 3 per cent.
