Shares of Indian IT companies fell sharply on Monday, with some stocks losing up to 6.5%, as renewed trade tensions between the US and China spooked investors. The Nifty IT index slipped over 1% to 36,948 in morning trade, extending losses for the second straight session.
The selloff follows a social media post by US President Donald Trump last week, accusing China of violating a recent trade agreement. Trump claimed that China had "totally violated" the deal, which he said was made to prevent further economic instability in China caused by earlier tariffs.
“China has totally violated its agreement with us. So much for being Mr. NICE GUY!” Trump posted on his platform, Truth Social.
Indian IT companies earn a significant portion of their revenue from the US market. Past tariff battles between the US and China have triggered fears of a US recession and rising inflation, which tend to weigh heavily on IT exports.
While trade tensions had eased briefly, the latest escalation has reignited concerns, dragging IT stocks lower.
Meanwhile, Mphasis led the fall, tumbling 6.5% to Rs 2,392, after reports that FedEx Corp. had chosen Accenture Plc to handle much of its IT work, ending a long-standing relationship with Mphasis. The client accounted for 8% of the company’s revenue.
Persistent Systems dropped nearly 3% to Rs 5,471. Shares of Tech Mahindra and Wipro slipped over 1%, while HCL Tech, TCS, Infosys, LTI Mindtree, and Coforge traded with marginal losses.
Also Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list
In response, China accused the US of violating the trade deal and warned of strong retaliatory measures. In a statement on June 2, the Chinese Ministry of Commerce said, “If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The selloff follows a social media post by US President Donald Trump last week, accusing China of violating a recent trade agreement. Trump claimed that China had "totally violated" the deal, which he said was made to prevent further economic instability in China caused by earlier tariffs.
“China has totally violated its agreement with us. So much for being Mr. NICE GUY!” Trump posted on his platform, Truth Social.
Indian IT companies earn a significant portion of their revenue from the US market. Past tariff battles between the US and China have triggered fears of a US recession and rising inflation, which tend to weigh heavily on IT exports.
While trade tensions had eased briefly, the latest escalation has reignited concerns, dragging IT stocks lower.
Meanwhile, Mphasis led the fall, tumbling 6.5% to Rs 2,392, after reports that FedEx Corp. had chosen Accenture Plc to handle much of its IT work, ending a long-standing relationship with Mphasis. The client accounted for 8% of the company’s revenue.
Persistent Systems dropped nearly 3% to Rs 5,471. Shares of Tech Mahindra and Wipro slipped over 1%, while HCL Tech, TCS, Infosys, LTI Mindtree, and Coforge traded with marginal losses.
Also Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list
In response, China accused the US of violating the trade deal and warned of strong retaliatory measures. In a statement on June 2, the Chinese Ministry of Commerce said, “If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
