Coforge, Persistent, Other IT Stocks Soar Up To 8% Despite Trump Doubling Down on Tariffs – News18
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The Nifty IT index saw a sharp rise in the early session of March 5, even as US President Donald Trump reiterated his plans to enforce reciprocal tariffs
IT Stocks Rise
The Nifty IT index saw a sharp rise in the early session of March 5, even as US President Donald Trump reiterated his plans to enforce reciprocal tariffs. “India charges us auto tariffs of 100 per cent. The system is not fair to the US, it never was. On April 2, reciprocal tariffs will kick in, and whatever they tariff us, other countries, we will tariff them. Whatever they tax us, we will tax them,” Trump stated during his address to the Joint Session of Congress.
US Tariff Threats Loom Over Indian IT Sector
While Trump’s aggressive tariff stance has increased uncertainty among investors regarding the growth prospects of India’s IT sector — which relies heavily on the US market for revenue — export-oriented IT stocks surged. Shares of Coforge, Persistent Systems, and Mphasis gained significantly, with the Nifty IT index rising by 1.6%.
Market Experts Cautious Amid Rising Trade Tensions
Despite the surge in IT stocks, experts remain cautious. “Uncertainty unleashed by Trump’s tariffs is reigning supreme now and this is weighing on markets. Consequently, trading volumes have dipped sharply. Market drifting down on low volumes doesn’t indicate a sustained downtrend from the current levels. In the ongoing chaotic scenario, any news and developments can trigger market moves,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Vijayakumar also pointed out that retaliatory tariffs imposed by China, Canada, and Mexico could have a significant impact on the US economy, leading to rising inflation and a hawkish stance from the Federal Reserve. “A sharp correction in the US stock market is likely. This will hurt Trump’s popularity and the negative wealth effect of a sharp market correction can aggravate the growth slowdown in the US,” he added.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
