IT Giants Under Pressure: Persistent Systems, Infosys, and Others Slide Amid Global Tensions

Market Performance

Indian IT stocks came under pressure on June 12 as the Nifty IT Index dropped over 1.3%, snapping a six-day rally and closing around 38,354. The IT index was the top sectoral loser on the NSE, weighed down by global trade uncertainties and rising geopolitical tensions.

Most of the frontline IT stocks, including Persistent Systems, Infosys, Coforge, HCL Tech, Mphasis, Tech Mahindra, Wipro, Tata Consultancy Services (TCS), and LTI Mindtree witnessed intraday declines.

Main News

Investor sentiment soured following remarks from US President Donald Trump and growing tensions in the Middle East. Trump's statements regarding unilateral tariffs and comments on the US-China trade deal contributed to market nervousness.

Additionally, Iran's threat to US military bases added to geopolitical anxiety, impacting risk assets globally—including the tech-heavy Indian IT sector.

Key Stock Movements:

• Persistent Systems: - ~2%, trading at ₹5,865
• Infosys: - ~2%, trading at ₹1,604
• Coforge: - ~1.4%
• HCL Tech: - ~1.4%
• Mphasis: - ~1%
• Tech Mahindra: - ~1%
• Wipro: - ~1%
• TCS and LTI Mindtree: Minor losses observed

Global Events Affecting Indian IT Stocks

1. US Tariff Uncertainty

On June 11, President Trump announced that new unilateral tariff rates would be introduced within two weeks. The move raises concerns about inflationary pressure in the US economy, as retaliatory actions by other nations could impact trade flows.

2. Geopolitical Tensions in the Middle East

Iran's Defence Minister Aziz Nasirzadeh warned that US military bases in the region could be targeted if conflicts escalate. This triggered fresh fears of regional instability, further spooking global investors.

3. Indian IT's US Exposure

Most Indian IT giants, including Persistent Systems, Infosys, HCL Tech, and TCS, generate a significant portion of their revenue from the US market. As such, any turbulence in US trade policy or inflation data directly impacts investor confidence in these firms.

US Economic Indicators That Influenced Sentiment

• May CPI Data: Consumer prices in the US increased 0.1% in May, below the 0.2% rise in April.
• US-China Trade Deal Update: Trump declared the deal as "done,” stating the US would gain from 55% tariffs compared to China's 10%. However, market observers remain cautious due to the mixed signals received in the past.

Company Details

All key IT players saw notable action:

• Persistent Systems and Infosys led the losses, each dropping close to 2%
• Coforge, HCL Tech, Mphasis, and Tech Mahindra were down 1–1.4%
• Wipro, TCS, and LTI Mindtree experienced smaller, marginal declines.

This broad-based correction across IT counters signals a cautious approach by investors amid uncertain global cues.

Summary

The Indian IT sector, including major players such as Persistent Systems, Infosys, HCL Tech, and TCS, faced selling pressure on June 12, driven by global geopolitical risks and concerns over US trade policy.

With most of their revenue streams linked to the US, these companies remain highly sensitive to macroeconomic developments such as inflation trends and trade decisions. Although the recent dip follows a week-long rally, investor attention is now likely to shift toward further developments in the global trade environment and geopolitical front.