Nifty IT Tanks 1.48% Today as US Tariffs on Indian Exports Trigger Broad-Based Selloff

Thursday, August 28, 2025 – The Nifty IT index, a benchmark index in the Indian IT sector, has declined sharply on Thursday as it slipped down by 535.45 points, having a 1.48% fall, which led it to an intraday low of 35,527.75 so far. The sharp decline comes after the enforcement of 50% cumulative US tariffs on Indian exports. During the sharp decline, all ten stocks of the index are declining, with zero advances or even unchanged stocks. This underscores that there is a sustained selling pressure in IT majors.

Market Snapshot

As of August 28, 2025, 11:21 AM, the NIFTY IT Index was trading at 35,657.35, low by 405.85 points, booking a 1.13% decline. The index opened in red today at 36,017.15, and quickly dropped to 35,527.75, the day’s low so far. 

Top Losers in Nifty IT

As the index spiralled in a downward rally, HCL Technologies led the decline, dropping 1.94% to ₹1,463.9, followed by Infosys down 1.28% at ₹1,510, and LTIMindtree losing 1.25% at ₹5,101. Heavyweights TCS and Wipro also retreated by 0.96% and 0.71%, respectively, while Persistent Systems, Mphasis, Coforge, Oracle Financial Services, and Tech Mahindra posted smaller cuts.

Key Drivers and Overall Market Sentiment

The fall in the IT sector is not isolated, as the overall market has been unstable, and the Sensex and Nifty 50 have also been experiencing losses. The volatility in the market is mainly fueled by additional tariffs imposed by the Trump-led US government on Indian goods. The tariff shock has led to several FIIs withdrawing their investments, which has further destabilised the economy. The continuous pressure on the market has nearly erased ₹4 lakh crore in market wealth over the past two sessions.

Recent Developments in the IT Sector

Despite the ongoing instability throughout the economy, and especially the IT sector, several industry leaders have been making breakthrough developments. HCLTech recently announced that it is launching an AI-powered Sovereign Collaboration Solutions under HCLSoftware. The solution is designed to provide digital independence and data security for governments and regulated industries. The solutions are built on Domino 14.5 with Sovereign AI and will ensure that the government’s sensitive data stays within national borders and the nation’s regulatory requirements.

Further, TCS also made a significant announcement as it disclosed that it has enabled ICICI Lombard to achieve a fully automated, multi-region disaster recovery system on AWS Cloud. The automation-led solution will strengthen resilience and reduce downtime. This makes ICICI Lombard one of India’s first companies to achieve fully automated multi-region resilience. This solution marks a new benchmark for business continuity in the BFSI sector.

Outlook

The fall in Nifty IT reflects that there is a mounting pressure from US tariffs throughout the economy and industries. While there has been positive development in terms of innovation in the industry, the ongoing decline across all indices signals that there is a heightened sectoral stress. During such uncertain times, investors should closely monitor global trade developments and currency fluctuations.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY IT

https://nsearchives.nseindia.com/corporate/TCS_CORPCS_25082025105158_PR_25Aug25_signed.pdf

https://nsearchives.nseindia.com/corporate/HCLTECH_27082025184524_Release27August2025signed.pdf

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