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Shares of IT companies, including Tech Mahindra, Infosys, and Wipro, rose up to 2% on Wednesday
IT Stocks Rise
IT Shares Gain: Shares of IT companies, including Tech Mahindra, Infosys, and Wipro, rose up to 2% on Wednesday ahead of the US government’s planned imposition of reciprocal tariffs on global trading partners.
The Nifty IT index gained 1.07% in intraday trade, rebounding after two sessions of losses that saw a cumulative decline of 4.21%.
Eight of the ten index constituents were in positive territory, with HCL Technologies and Coforge being the only laggards.
Tech Mahindra led the gains, climbing 2.21% to an intraday high of ₹1,426.05 on the NSE, reversing losses from the previous two sessions. Infosys and Wipro followed, rising 1.9% and 1.12%, respectively, while Persistent Systems advanced 1.64% to ₹5,297.25 per share.
With US President Donald Trump set to announce broad reciprocal tariffs on April 2, concerns over potential retaliatory measures have surfaced. However, despite its heavy reliance on US exports, the Indian IT sector attracted buying interest ahead of the announcement.
In a recent note, global brokerage JPMorgan highlighted its preference for Coforge, Infosys, KPIT Technologies, and Tech Mahindra, while maintaining a cautious outlook on TCS, Wipro, HCL Technologies, Tata Technologies, and Tata Elxsi for the quarter.
The Nifty IT index has fallen 14% year-to-date, suggesting that much of the sector’s downside may already be priced in.
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