TCS, Infosys, HCL Tech, Tech Mahindra, Wipro stocks: JM Financial shares price targets amid Trump tariffs effect

Shares of Tata Consultancy Services (TCS), Infosys Ltd, HCL Technologies, Tech Mahindra Ltd and LTIMindtree have fallen up to 22% in the last six months. A majority of this crash comes after US President Donald Trump started announcing tariffs in January this year to boost local trade.

Market watchers said demand for IT services from the US was likely to be affected, which dented sentiment around Indian IT stocks.

IT stocks such as LTIMindtree (21.78%), TCS (19.15%), Infosys (9.77%), HCL Technologies (9.53%) and Tech Mahindra (7.32%) slipped in the last six months, making investors concerned over the fate of their portfolios.

However, large cap IT stock Wipro rose 10% during the same period. Nifty IT index slipped 9.91% and BSE IT index lost 12.46% in six months, signaling gloomy sentiment over the fate of IT investors.

Brokerage JM Financial expects up to 20% upside in shares of Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra.

The brokerage has a price target of Rs 4,680 in India's largest software exporter TCS with a buy call.

While Infosys with a buy call can reach up to Rs 2,200 mark, HCL Technologies with a hold call can hit a target of Rs 1,830 in a year. Tech Mahindra is also a buy, according to JM Financial, with a price target of Rs 1,870.

IT major Wipro's stock can be bought for a target of Rs 360, says the brokerage. However, LTIMindtree has a price target of Rs 4,800 with a sell call.

On the new US government and tariffs coming into place, JM Financial said, "Most players had echoed cautious optimism in their 3Q commentary. They cited improvement in short duration deals and continued discretionary spend in BFS. TCS indicated reduction in deal decision cycles (for USD 20mn+ TCV deals). HCL reported 23%+ YoY growth in ACV. Wipro highlighted improved traction in $1-10 mn deals. Part of the optimism was predicated on reducing uncertainty as new US administration took office. Anything but that has happened since. Tariffs and counter tariffs have infused more uncertainty. Inflation and rate cut trajectories have worsened. Our recent interactions with IT Services players gave us mixed signals. Few are maintaining their 3Q view still, especially on BFS. We also picked up instances of pause in large programs by US banks. That, if expands, does not bode well."