US Court Reinstates Trump-Era Tariffs; TCS, Infosys, HCL Technologies Among IT Stocks Hit

Market Performance

Indian IT stocks witnessed a noticeable downturn on May 30 after a US federal appeals court temporarily reinstated tariffs introduced during Donald Trump's presidency.

• The Nifty IT index dropped nearly 1% intraday.
• Stocks of major tech firms, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tech Mahindra, and LTIMindtree, fell by up to 2% during the trading session.

This market dip follows renewed concerns about U.S.-India trade dynamics and their impact on export-heavy sectors, such as IT services.

Main News

The reversal came after the US Court of International Trade's previous decision, which had initially blocked the tariffs, was temporarily stayed. The appeals court stated:

“An immediate administrative stay has been granted, and the previous rulings have been temporarily suspended until further notice.”

This legal update has reintroduced uncertainty into global trade, particularly for Indian IT companies that generate a substantial portion of their revenue from U.S.-based clients.

Just a day earlier, the market had celebrated the initial tariff block, which lifted investor morale. However, the reinstatement has reversed those gains swiftly.

Company Details

Here's how leading Indian IT firms reacted:

• Tata Consultancy Services (TCS) share price: Declined during intraday trade amid renewed trade worries.
• Infosys share price: Faced a drop in line with sectoral performance.
• HCL Technologies' share price: Fell by up to 2% as the Nifty IT index took a hit.
• Tech Mahindra's share price : It also experienced a negative intraday movement.
• LTIMindtree share price: Declined with broader IT market sentiment.

The tariff uncertainty is seen as a significant headwind for these companies, which rely heavily on export-led contracts, primarily from the United States.

Summary of the Article

• A US federal appeals court reinstated Trump-era tariffs, impacting global trade sentiment.
• Leading Indian IT firms, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tech Mahindra, and LTIMindtree, experienced intraday stock price declines of up to 2%.
• The Nifty IT index fell by nearly 1%, reflecting sector-wide investor concern.
• The ruling reverses the optimism sparked by a prior court decision that had blocked the tariffs.

The reinstatement of these trade measures has rekindled concerns around discretionary US spending and the outlook for India's export-oriented IT sector.