Trade Frictions Trigger Market Pullback: India's IT Firms Face Steeper Declines

Indian equities retreated for a second consecutive session on Thursday as escalating trade tensions and geopolitical uncertainties weighed on investor sentiment. The Information Technology sector bore the brunt of the selling pressure, emerging as the hardest-hit segment across the market.

The benchmark BSE Sensex fell by 155 points, settling at 84,805 (a 0.2 percent decline), while the NSE Nifty 50 dropped 66 points to close at 26,074, representing a 0.3 percent loss. Broader selling was evident across both indices as trade-related anxieties dominated trading floors throughout the session.

IT Stocks Lead Downside on Trade Headwinds

Information Technology majors experienced the steepest declines amid concerns about potential tariffs and cross-border commerce disruptions. TCS (Tata Consultancy Services) saw its shares sink nearly 2 percent, while Infosys retreated around 1 percent. Tech Mahindra also declined approximately 1 percent as the sector faced heightened volatility tied to international trade dynamics.

The trade-sensitive nature of India’s IT services industry—heavily dependent on exports to developed markets—made these companies particularly vulnerable to current geopolitical tensions.

Broader Market Weakness Across Sectors

Beyond technology, weakness was widespread. Reliance Industries, Sun Pharma, Maruti Suzuki India, UltraTech Cement, and Asian Paints all posted losses in the 1 percent range, signaling a cautious tone across manufacturing and consumer-oriented stocks.

Tata Steel dipped slightly following the release of its third-quarter business update, though details of the results offered limited directional cues for the stock.

Selective Bright Spots

Gland Pharma emerged as a rare gainer, advancing 1.4 percent after securing FDA approval for its Abbreviated New Drug Application covering Olopatadine Hydrochloride Ophthalmic Solution USP, 0.7 percent formulation (over-the-counter).

Meesho experienced a sharp 4.3 percent plunge following the resignation of Megha Agarwal, the company’s general manager for business operations. IIFL Capital Services shed 1.6 percent as it clarified media speculation regarding TPG Capital’s potential minority stake acquisition (reported at 30-40 percent levels).

Samvardhana Motherson International declined 1.2 percent after establishing a new wholly owned subsidiary, Motherson Egtronics Electronics Solutions, expanding its operational footprint.

Disclaimer: The views expressed are those of the author and do not necessarily represent the perspective of Nasdaq, Inc.