Infosys, Wipro, Sonata Software: IT stocks continue to bleed, NIFTY IT index slips 2%; top reasons behind today's fall

The NIFTY IT index has fallen over 23% so far in 2025 (as of the April 16 closing), and the pain is unlikely to subside anytime soon. Global macro uncertainty after Trump's tariff measures has only exacerbated the issue.

On Thursday, shares were trading with deep losses. The NIFTY IT index was trading at 32,588.05, down over 2%.

Besides this, Sonata Software, which is not a part of the NIFTY IT index, tumbled as much as 14% after it said that the revenue estimates for Q4 2024–25 from its largest client were likely to be lower than anticipated, resulting in lower revenue from its international business for the said quarter.

Last seen, the stock was trading at ₹303.70, down 9.36%.

Nvidia warning

Last night, Nvidia said it will take a $5.5 billion financial hit after Washington placed fresh restrictions on the export of its H20 artificial intelligence chips to China.

The chips totaled an estimated $12 billion to $15 billion in revenue last year. Advanced Micro Devices echoed similar concerns, saying in a filing Wednesday that it expects a $800 million hit from curbs on its MI308 products.

Tech stocks fall

Following the statements by Nvidia and other companies, technology stocks tumbled. Tech-heavy index, NASDAQ, ended over 3% lower at 16,307.16 levels.

Other indices, too, slumped in the trade. The Dow Jones Industrial Average fell 699.57 points, or 1.73%, to 39,669.39, and the S&P 500 lost 120.93 points, or 2.24%, to 5,275.70.

Fed Chair statement

Sentiment is likely to take a hit also because of the warning by the Federal Reserve Chair Jerome Powell. Powell said US economic growth appears to be slowing amid Trump's tariff announcements.

Powell, in remarks for the Economic Club of Chicago, said larger-than-expected tariffs likely mean higher inflation and slower growth. But he said the Fed would wait for more data on the economy's direction before making any changes to interest rates, said a Reuters report.

“We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation,” he said at an event just outside Washington, DC. “While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," said a CNN report.

Sonata Software shares gloomy update

In its regulatory filing, Sonata Software said that the revenue estimates for Q4 2024-25, from its largest client,t are likely to be lower than anticipated, resulting in lower revenue from its international business for the said quarter than previously envisioned during the previous Analyst/Investor call held on February 6, 2025.