IT stocks tumble on growth concerns following Trump's reciprocal tariffs: Persistent, Coforge, Mphasis tank over 8%

US President Donald Trump’s 27% tariff announcement on India made the Indian stock market nervous, but it remained resilient. IT sector stocks were one of the most hit during the morning trade, as they were trading 3.27% lower on Thursday.

The sector was trading negatively on concerns of rising inflation following the tariff announcement and a slowing economy. The Trump administration, however, has not said anything specific to the sector.

While announcing a tariff on India, the US President on Wednesday said, “India, very, very tough. Very, very tough. They charge us 52%. You have to understand, we charged them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China.”

Meanwhile, HCL Technologies, TCS, Infosys, and Tech Mahindra were the biggest laggards on the NIFTY50 index.

The Nifty Midsmall IT and Telecom was also down 2.97% in the early trades.

The report also said that the brokerage noted the fourth quarter is expected to display softer seasonality due to a combination of weak macroeconomic conditions and early signs of deflation in artificial intelligence (AI) for the sector. Mid-sized IT companies are likely to sustain growth momentum; large-cap players may struggle to maintain positive quarter-on-quarter growth.

The brokerage also highlighted that revenue growth guidance for FY26 is expected to remain modest.

As per reports, JPMorgan’s latest note underscores the difficulties ahead for the Indian IT sector.

In the sector, Persistent Systems was the biggest losing stock, plunging over 8.4%.

Following that, Coforge was trading 5.87% lower, Mphasis was down 4.08%, Tata Consultancy Services slipped 3.07% and Tech Mahindra also declined 2.89%.

Other IT company shares like Infosys, Wipro and LTIMindtree were also trading lower by 2.85%, 1.80% and 3.26%, respectively.