Tech stocks tumble over US spends uncertainty

BENGALURU: US President Donald Trump's tariff announcement sent tech stocks into a frenzy on Thursday. Stocks of Indian IT firms fell between 3% and 10% amid projections of sluggish growth and restrictive trade measures affecting some sectors that might impact overall technology expenditure. The increasing macroeconomic uncertainties are expected to affect growth prospects in FY 26.

TCS fell nearly 4%, while Infosys dropped about 3.5%. Mid-tier IT firms Persistent Systems and Coforge plummeted nearly 10% and 7.7% respectively. Chirag Kachhadiya of Ashika Stock Broking, said, "The US remains the largest revenue-contributing geography for large-cap IT companies, accounting for over 50% of industry revenue. While we do not expect IT services to face a direct impact from tariffs, restrictive trade policies affecting other sectors and countries could influence overall tech spending."

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