IT stocks such as Infosys, Wipro, LTIMindtree, TCS, Tech Mahindra, Mphasis, Coforge, Zensar Technologies, Birlasoft and Sonata Software were the top losers in a highly volatile market on Tuesday as investors panicked amid uncertainty over Trump tariffs and a correction in the US market.
Uncertainty over US trade policy prompted investors to press 'sell' button on domestic market amid fears that reciprocal tariffs on Indian exports starting April, could impact multiple sectors.
The BSE IT index was the top sectoral loser on BSE, falling 795 points to 36,203.88 against the previous close of 36,999.86. On similar lines, Nifty IT index lost 2.1% or 818 points to reach a low of 36,826.90 in the current sesion.
IT shares have been in a correction mode after US President Donald Trump on January 20 said he would impose an additional 10 percent tariff on Chinese imports while moving ahead with levies on Canada and Mexico.
In the current session IT stocks such as LTIMindtree Ltd (3.19%), TCS (1.42%), Infosys Ltd (3.85%), Wipro (2.77%), Tech Mahindra (1.5%), Mphasis (2.81%), Coforge (4%), Zensar Technologies (5%), Birlasoft (5%), Sonata Software (4%) were the top losers in Tuesday's trade on BSE IT index.
Meawhile, Centrum Broking has come out with price targets for IT stocks in a year.
"In our coverage universe, our top picks in IT Services are Infosys followed by TCS in tier 1 category. While we prefer LTIMindtree and Coforge in tier 2 category," the brokerage said.
The brokerage assigned an Add call to TCS with a price target of Rs 4,589 and gave a buy rating to Infosys with a buy call for a target of Rs 2,218 in a year.
Shares of IT major HCL Technologies received an Add rating with a price target of Rs 2,076. On the other hand, it has a reduce call for Wipro with a target of Rs 291.
Tech Mahindra received an ADD call with a target of Rs 1,868 and LTIMindtree can be bought for a target of Rs 7,188, according to Centrum Broking.
L&T Technology Service got a reduce call with a target of Rs 5,050 and 'REDUCE' for Mphasis with a target of Rs 3071. Coforge can be bought for a target of Rs 10,540 and Happiest Minds stock can be added to the portfolio with a target of Rs 769.