Nifty It News

Indian tech companies faced a challenging March quarter, with revenue declines reported across major IT services. Cautious spending and project delays may lead to continued headwinds in upcoming quarters.

Nifty IT index ended April down 3%, marking a four-month losing streak. Seven of ten index constituents, including Coforge and Wipro, saw declines. Despite a recent rebound, the index remains in bear territory, impacted by global trade tensions and cautious forecasts from major IT firms.

Multibagger small-cap IT stock in focus: Domestic brokerages have lowered target multiples for KPIT Technologies following its Q4FY25 performance, citing uncertain demand and no revenue guidance for FY26.

Domestic technology stocks saw a significant rebound with HCL Tech up 7.7%, Wipro gaining 4%, and Infosys rising 3.7%. The Nifty IT index increased by 4.34%, marking its largest gain since July 2024, driven by HCL's positive revenue growth guidance.

In an filing to the exchanges on Wednesday, the company said that the revenue from its largest client to be lower in March quarter than the previously projected.

JPMorgan said on Friday that the likelihood of a recession in 2025 has risen to 60%. If a recession occurs in the U.S., it could lead to reduced discretionary spending, potentially affecting IT sector stocks.

Indian technology stocks faced significant selling pressure, with the Nifty IT index dropping 3.3% to a 9-month low amid fears of a US recession. Tariff policies from the Trump administration have heightened concerns about a potential economic slowdown affecting Indian tech companies.

The Indian stock market benchmark indices, Sensex and Nifty 50, traded lower on Thursday following a sharp sell-off in global markets. This decline came after US President Donald Trump announced reciprocal tariffs on over 180 countries, including a 26% tariff on India—half the rate India imposes on US imports. Additionally, Trump imposed a 25% tariff on automobile imports into the US. These developments led to selling pressure in sectors like IT and automobiles, while pharma stocks gained as they were exempt from the tariffs for now. Watch!

Persistent System shares led the decline among the Nifty IT constituents, falling 6.5%, followed by Coforge shares down over 4% and Mphasis stock price declining over 3%.

Indian IT stocks continue to struggle, facing a 15% decline in Q1CY25 amid concerns over US economic growth and trade tensions. Analysts are cautious about the sector's future, citing elevated valuations and potential challenges from artificial intelligence disruptions.