Market Slides Amid Tariff Concerns, IT Stocks Weaken

Stock market activity sees declines driven by tariff concerns and the impending release of key inflation data. The IT sector particularly struggles as major players like Infosys and TCS face losses amid broader market pressure.

Date: 28-03-2025

AI Rating: 5

The recent report highlights a subdued performance in the Indian stock market, primarily influenced by ongoing concerns over U.S. President Trump's tariff policies and the anticipation of the PCE price index report, which is crucial for gauging inflation. The negative sentiment is evident as the benchmark BSE Sensex and NSE Nifty both recorded declines.

Impact on IT Stocks: The IT sector faced significant pressure, with shares of major companies such as Infosys, TCS, Wipro, Tech Mahindra, and HCL Technologies falling between 1-2 percent. This could indicate potential issues with revenue growth and profit margins amid increasing operational costs due to tariffs. If the current trends continue, investors might be cautious about the sustainability of earnings in this sector.

Positive Developments: On a more positive note, some companies such as BEML and Zaggle Prepaid Ocean Services reported significant gains due to new orders and acquisitions, indicating growth potential. BEML surged nearly 7 percent after securing orders worth Rs. 405 crores, while Zaggle gained 5 percent following the acquisition of a 45% stake in Effiasoft. Additionally, Bharat Electronics experienced a 1 percent gain after announcing new orders worth Rs. 1,385 crores, showcasing resilience in certain segments.

Market Sentiment: The overall bearish trend in the market and among IT stocks may lead to lower investor confidence, and could result in a cautious approach towards upcoming earnings reports. The anticipated inflation data may further amplify the market's response based on whether it indicates rising costs affecting consumer spending and corporate profitability.

In conclusion, while there are some positive developments, the prevailing concerns surrounding tariffs and inflation are likely to overshadow these gains in the near term.

Stocks: INFY TCS WIT TECHM HCLTECH PGRD SUNPHARMA MARUTI BEML ZAGGLE BEL ASIANPAINT