Market Overview
Indian stock markets experienced early morning turbulence on July 7, 2025, as key indices, including the Nifty IT and Nifty Auto, slipped into the red.
- Nifty IT Index: Hovered around 39,004
- Nifty Auto Index: Down near 23,949
The pressure stemmed from renewed tariff uncertainty surrounding US trade policy and the absence of a concrete trade agreement between India and the United States.
Main News: IT and Auto Stocks Under Pressure
The broader market sentiment turned cautious following US President Donald Trump's announcement of a fresh round of tariffs. His government is dispatching "take it or leave it" tariff proposals to multiple countries, including India.
- The 90-day pause on US tariffs ends on July 9
- Elevated tariff rates are scheduled to begin on August 1
- President Trump announced an additional 10% tariff on BRICS-aligned nations
This development has heightened concerns, particularly for export-oriented sectors such as IT and Auto.
Tech Mahindra (TechM), Infosys, TCS and Peers React
The IT sector, heavily reliant on the US economy for revenue, was quick to react to the escalating tariff narrative.
Share Price Movement:
- Tech Mahindra (TechM), Mphasis, HCL Tech: Fell up to 2%
- Infosys, Wipro, Persistent Systems, TCS: Traded in the red with marginal losses
The weakening of the US dollar and uncertainty in outsourcing decisions have led investors to adopt a risk-averse approach to IT stocks.
Company-Wise Snapshot
Here's a quick look at how major IT firms were impacted during early trade:
Company | Share Movement on July 7 |
Tech Mahindra (TechM) | - Up to 2% |
Mphasis | - Up to 2% |
HCL Technologies | - Up to 2% |
Infosys | - Marginal losses |
Wipro | - Marginal losses |
Persistent Systems | - Marginal losses |
Tata Consultancy Services | - Marginal losses |
Broader Trade Developments Impacting Market Mood
The looming August 1 deadline for implementing tariffs has rattled both institutional and retail investors. India has signalled that it won't be pressured into signing any deal hastily.
- Commerce Minister Piyush Goyal reaffirmed that India will only sign a deal that aligns with national interest
- India has proposed retaliatory duties at the World Trade Organisation (WTO)
- The US's 25% auto tariff impacts about $2.89 billion worth of Indian exports
Export-Oriented Sectors Bear the Brunt
Besides IT, auto stocks also experienced selling pressure:
- Maruti Suzuki: Down over 1%, trading at ₹12,510
- Bharat Forge: Dropped nearly 1%
- Tata Motors: Registered marginal losses
These companies face a dual challenge: tariff risks and a a lack of clarity on future trade policies.
Summary
The stock performance of Tech Mahindra (TechM), Infosys, TCS, Wipro, and other IT giants reflected a broader market unease on July 7, 2025, triggered by geopolitical uncertainties.
With no finalised US-India trade deal and growing concerns over new tariff barriers, IT and Auto stocks remain vulnerable. Investors are closely watching as the deadline for implementing US tariffs nears.
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