Mphasis, Infosys, other IT stocks slide up to 3% ahead of Trump’s tariff verdict

The shares of Mphasis fell the most, by 3% to their day’s low of Rs 2,425 on the BSE, followed by the shares of Infosys, which fell by 2.8% to Rs 1,526.75 and Persistent Systems shares, which fell by 2.4%. The shares of Oracle Financial Services Software (OFSS) fell by 2.14% to Rs 7,675.

Meanwhile, the shares of Wipro, LTIMIndtree, Tech Mahindra, Coforge, Tata Consultancy Services (TCS) and HCL Technologies fell between 1-2% on the BSE today.

Trump has reaffirmed his commitment to implementing sectoral tariffs, emphasizing that countries mistreating Americans should expect trade penalties. He is expected to outline detailed specifics during the upcoming announcement, according to reports that quote the White House Press Secretary.

In remarks to the press, Trump stated, “Maybe tomorrow night or Wednesday, you will see tariff details,” and assured that the U.S. will remain “very fair compared to other countries.” He also hinted that in some instances, tariffs could be substantially lower.

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According to agency reports, The White House has announced that the major event is scheduled for Wednesday in the Rose Garden, where President Donald Trump is expected to unveil his latest tariff plan. The event, set for April 2, will be attended by several cabinet members, signaling the significance of the announcement.Additionally, ahead of the Q4 earnings season, domestic brokerage firm Motilal Oswal stated that within its coverage universe, IT companies are expected to post growth, however, the margins are expected to be range-bound.Overall, Motilal Oswal expects a weak Q4 for large IT firms, with Infosys and TCS likely to post QoQ revenue declines of 1.0% and 0.5%, respectively. HCLTech may see a 0.6% dip, while Tech Mahindra could fall 0.8%. Wipro is expected to remain flat, and LTIMindtree may post marginal 0.2% growth. Among mid-tier players, LTTS is expected to lead with 15% cc growth (7% organic), followed by Persistent and Coforge (4.0–3%), and Mphasis (3%). Cyient DET is likely to see another weak quarter with flat revenue and a 2.7% YoY decline, falling short of its FY25 guidance due to sectoral challenges.

However, the brokerage firm believes that most large-caps are trading at 5-year average PE multiples, and further de-rating, if the trade war escalates and the US/Europe macro worsens, is unlikely.

With this, analysts at Motilal Oswal have named Tech Mahindra and Coforge as their top picks as they favor bottom-up transformation stories over discretionary-led names.

Tech Mahindra (TECHM) stands out among Tier-I firms due to early transformation gains, improved BFSI execution, and promising telecom recovery, with margin expectations now more realistic. HCLTech is also favored for its resilient portfolio, while TCS offers a balanced risk-reward.

Among Tier-II names, Coforge leads with strong BFSI and insurance exposure, robust deal wins, and solid growth outlook. Its organic business is performing well, and early cross-selling with Cigniti suggests a quicker-than-expected turnaround.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)