Tech stocks are under pressure as the market prepares for key Q4 earnings next week. The Nifty IT Index has fallen nearly 2% today, following a sharp 4% decline on April 3. Over the past month, the index has dropped around 7%, with stocks like Coforge, Wipro, Persistent, and Infosys among the top losers.
Leading IT companies witnessed a sharp decline today, with the Nifty IT Index falling nearly 2%. Coforge share price dropped 6.21% to ₹6,713.10, hitting an intraday low of ₹6,623.00 after opening at ₹7,050.35. Wipro share price fell 3.43% to ₹247.55, touching a low of ₹246.80 from an opening price of ₹253.00. Persistent Systems share price also saw a steep fall of 5.78%, closing at ₹4,516.10, with an intraday low of ₹4,498.60. Infosys share price declined 2.33% to ₹1,461.65 after opening at ₹1,460.50, with a low of ₹1,451.25. The decline in IT stocks follows global market weakness, recession fears in the U.S., and concerns over weak Q4 earnings in the sector.
The current slump in tech stocks is part of a broader market trend, with Wall Street witnessing its worst single-day fall since the COVID-19 crash.
Tech stocks in the U.S. faced heavy selling after former President Donald Trump announced new tariffs, sparking fears across global markets. The Nasdaq and S&P 500 fell 5% each, while major tech companies like Apple, Amazon, and Nvidia recorded significant losses. Apple alone dropped 9%, marking its worst day in years.
Concerns over a potential U.S. recession are growing due to the impact of tariffs. Tariffs could increase inflation, reducing demand and slowing economic growth. Former RBI Governor Raghuram Rajan has also criticised the move, calling it a “self-goal” for the U.S. economy.
The Indian IT sector is bracing for weak Q4 earnings, especially with continued challenges in the U.S. market. IT firms are struggling to improve profit margins due to high employee utilisation and low attrition. They also highlight pricing pressure in new deals, which could limit revenue growth in FY26.
While IT heavyweights like TCS, Mphasis, and LTIM are seen as relatively better positioned, Infosys is expected to provide a cautious revenue growth outlook of just 1-3% for FY26, similar to FY25. HCL Tech may aim for 3-5% growth, but overall, the sector faces tough conditions.
Tech stocks are under pressure due to global market turmoil, concerns over a U.S. recession, and weak earnings expectations. With the Nifty IT Index already down 7% in the last 30 days, investors remain cautious ahead of upcoming earnings reports.
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Published on: Apr 4, 2025, 12:29 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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