Wipro, Coforge Share Price Decline, Nifty IT Falls Over 7 Per Cent - Know Why

Wipro, Coforge Share Price: D-street witnessed broad-based selling across sectors on April 7. While no sector was left unscathed by US President Donald Trump’s tariff announcement, shares of domestic IT enabled services providers witnessed some of the most significant declines.

Coforge Share Price Decline

Shares of Coforge Ltd, MPhasis Ltd and Infosys Ltd fell the the most among all constituents of the Nifty IT index as they closed lower by as much as 5.35 per cent. Earlier today Coforge , share price declined nearly 10 per cent to an intraday low of Rs 5,970.05 apiece on the NSE. The stock recovered a little to close lower by 3.15 per cent at Rs 6,400 apiece on the NSE.

Wipro Share Price Decline

Wipro share price declined significantly during the day, the stock declined over 7 per cent to trade at an intraday low of Rs 228 apiece on the NSE. However the stock recovered a little to close lower by Rs 243.15 apiece down by 1.28 per cent.

Other major losers among Nifty IT stocks included HCL Technologies Ltd, Oracle Financial Services Software Ltd and Tech Mahindra Ltd which closed lower by as much as 3.1 per cent on the NSE. Shares of LTI Mindtree Ltd and Tata Consultancy Services also ended the trade in the red, closing lower by as much as 1.07 per cent. Shares of Persistent Ltd bucked the trend and closed in the green up by 0.28 per cent at Rs 4,623 apiece on the NSE.

Why Did Nifty IT Stocks Decline

Earlier in today’s trade the Nifty IT index declined over 7 per cent at the day’s low. The Nifty IT index ended lower by 2.51 per cent at 32,668.8 levels. All nine out of the ten constituents of the index closed in the red as shares of IT service companies declined owing to their heavy reliance on the US for a major portion of their revenue.

The declines seen in prices of index heavyweights such as Infosys Ltd, Tata Consultancy Services Ltd and HCL Technologies Ltd dragged the index lower. Notably the three stocks are the top-constituents of the Nifty IT in terms of weightage. Out of the top constituents the shares of Infosys declined the most closing lower by 3.22 per cent at Rs 1,404.9 apiece on the NSE.

Shares of the index heavyweights declined amid increasing concerns regarding the future financial performance of IT companies. The imposition of tariffs is expected to negatively impact sales growth since the US market comprises a major part of the revenue earned by domestic IT players.

It is anticipated that the imposition of tariffs is likely to lower the number of deal wins for domestic IT players from US clients, which in turn can negatively affect their revenue.