Coforge, Infosys: NIFTY IT surges nearly 3% after plunging around 8% in five sessions; details to know today

The domestic stock market took a sigh of relief on Tuesday, April 8, and looked poised to recover some of the lost ground in the morning trade as global cues supported the sentiment.

The markets across the globe witnessed a meltdown on Monday as fears of recession spooked investors amid the trade war initiated by the US.

On Tuesday, healthy buying was witnessed across the board, and IT stocks were no different.

The battered sector, which has declined nearly 8% in the past five sessions, rose sharply in the early trade.

The NIFTY IT index provides investors and market intermediaries with an appropriate benchmark that captures the performance.

TCS, which is slated to announce its March quarter (Q4 FY25) results on April 10, was trading 0.4% higher at ₹3,287.10.

In the overnight trade on Wall Street, the tech-heavy index, Nasdaq Composite, gained 15.48 points, or 0.10%, to 15,603.26 levels.

What you need to know about IT sector

The export-led Indian IT sector, analysts note, is not directly hit by Trump's tariff order on goods, but there could be worrisome indirect bearings on it arising out of a possible slowdown in decision-making and GDP growth in America over higher tariffs, which may then cloud demand from specific verticals.

The $250 billion Indian IT pack – which derives a substantial chunk of its revenue from servicing US clients – is in a wait-and-watch mode to assess the full impact as it unfolds in the coming quarters (as well as the trade negotiations in the offing that could sway equations).

India's IT services sector has already been facing growth headwinds over the past quarters, with clients in the US and EU closely scrutinising tech spends amid economic pressures, while the increased charm of AI has led to fears of reduced job creation globally.

Adding to that now, prospects of global economic wars, given the US's fresh tariff offensive on trading partners and major allies, have deepened worry lines about a slowdown in the United States and uncertainties ahead.

The IT sector is expected to post a modest performance in the March quarter, with constant currency (CC) revenue growth ranging between -1% and 0.6% for Tier I companies like Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Tech Mahindra and LTI Mindtree and between 0% and 4.5% for Tier II companies such as L&T Technology Services, Coforge, Persistent Systems, Mphasis and KPIT Technologies.

The slowdown is attributed to fewer billing days, delayed deal ramp-ups, AI-driven productivity enhancements, and currency headwinds, financial services company Philip Capital said in a report.