TCS, Infosys, Mphasis, Coforge, HCL shares under pressure as Nifty IT slips for sixth session

The Nifty IT index slipped for the sixth straight session on Thursday, reflecting uncertainty  in the global economic outlook since the start of tariff war by US President Donald Trump. Brokerage JM Financial says a trade war seems imminent, which is likely to put global economic growth on risk. "Inflation in the US has pushed out Fed rate cut hopes and dragged consumer confidence in the US. Such uncertainty is anathema to IT Services demand," said the brokerage. 

On February 21, US said consumer sentiment in the nation fell more than expected in February to a 15-month low. Inflation expectations zoomed over households worries that President Donald Trump's plans for steep and broad-based tariffs would affect their purchasing power.

According to reports, households saw inflation at 3.5% over the nexst five years- the highest since 1995 - compared with 3.2% in January. That rose from the preliminary reading two weeks ago for 3.3%.

The brokerage picked TCS & Infosys and referred to them as stocks with earning resilience and valuation buffer in the current scenario. 

"In our recent interactions with IT Services players, we picked up sporadic instances of pause in transformation programs by large US banks. This, if spreads, could put Street’s (and ours) FY26 growth estimates at risk. Our estimates and price targets are unchanged for now as we seek more evidence. But will advise flight to safety, that is, stocks with earning resilience and valuation buffer. TCS/INFO tick those boxes," said JM Financial.   

Mphasis was top loser on the Nifty IT index today, tumbling 3.12 percent to Rs 2,376.40 per share. The stock has fallen 10% in the past four sessions. Other losers from the IT pack were Coforge (1.90%), LTI Mindtree (1.70%) and L&T Technology Services dropping 1.74%, respectively.

Market heavyweights Tata Consultancy Services (TCS), Infosys, and HCL Technologies ended 0.47%, 0.19%, and 0.42% lower, respectively on NSE.

However, IT major Wipro bucked the trend with the stock rising 1.10% to Rs 294.50. The Nifty IT index ended 184.65 points or 0.47% lower at 38,946. The index has lost 6% or 2,517 points in the last six sessions. 

On similar lines, the BSE Information Technology closed lower for the fourth straight session today. The index slipped 242.49 pts to 38,259 on Thursday. It has declined 4.46% or 1786 pts in four sessions.