TCS, Infosys & Coforge Share Price Plunges as Nifty IT Index Plunges on Tariff-Driven Global Sell-Off

Market Performance

The Nifty IT index saw a sharp decline of 7% in early trade on April 7, 2025, amid global market turbulence and increasing trade-related concerns. Over the past month, the index has dropped by 6%; over six months, it has declined by 20%. This marks a significant erosion in investor wealth in the IT sector.

Main News

Renewed worries over U.S. trade tariffs triggered the steep sell-off. Statements from U.S. President Donald Trump have heightened market concerns, particularly for Indian IT firms relying heavily on American clients' revenue. The potential impact on deal pipelines and sales growth has weighed heavily on investor sentiment.

Large-cap companies such as Infosys, TCS, and HCL Technologies led the decline in the Nifty 50 index. Mid-cap IT firms, including Coforge and Mphasis, were also hit hard, with share prices falling between 6% and 9%. Infosys experienced the most significant single-day drop, sliding by 10%.

Company Details

Infosys Share Price

• Fell 10% during early trading on April 7, 2025.

Coforge and Mphasis Share Prices

• Declined in the range of 6% to 9%.

These firms are particularly exposed because they depend on the U.S. for a substantial portion of their revenue. The imposition of tariffs is expected to affect client spending patterns and delay new deal closures.

Global Market Context

Global markets reflected a similar risk-off sentiment. Key indicators showed significant losses:

• S&P 500 Futures: Down 4.31%
• Nasdaq Futures: Down 5.45%
• Nikkei (Japan): Dropped 7.8%
• Kospi (South Korea): Declined 4.6%
• Hang Seng (Hong Kong) and Taiwan Benchmark: Both fell 10%

These losses added to the already substantial global market wipeout, which has erased nearly $6 trillion in value from U.S. equities over the past week.

Summary

Global trade concerns and a risk-off sentiment across markets heavily impacted Indian IT stocks. The Nifty IT index dropped 7% in a single session, with major companies like Infosys, Coforge, and Mphasis seeing steep declines. The sector's dependence on U.S. clients makes it particularly vulnerable to tariff-related disruptions, contributing to a broader downtrend in Indian equities.