TCS Shares Dip 3.5% as US Slaps 27% Tariff on Indian Imports

By siliconindia  |  Friday, 04 April 2025, 12:09:12 PM IST

TCS Shares Dip 3.5% as US Slaps 27% Tariff on Indian Imports
Tata Consultancy Services (TCS) stock plunged steeply by 3.51% to Rs 3,419.70 at 11:55 AM on the National Stock Exchange (NSE), following the US administration's move to impose a 27% tariff on Indian imports. The stock went down by Rs 124.25 from Monday's close at Rs 3,543.95, dipping to an intraday low of Rs 3,416 as investor sentiment also became cautious.
The newly sworn US president unveiled a broad trade policy that levies a 10% across-the-board tariff on all imports and a higher 27% tariff on Indian products specifically. Principal sectors hit include processed foods, textiles, gems, electronics, and chemicals. But important categories like pharmaceuticals, semiconductors, and energy products are exempt, offering limited respite to some industries.
Even as the IT industry has not been directly affected by the tariffs, market analysts fear a ripple effect. Given that the US is the biggest market for Indian IT services, players such as TCS may suffer if client expenditure declines in an atmosphere of trade war and general economic uncertainty. Analysts have cut growth estimates for large Indian IT companies to a moderate 2.5% to 4.5% over the next quarters.
TCS plans to announce April 2025 quarter results on April 10, 2025. Ahead of the numbers, investors have been monitoring in anticipation of comments from management about demand expectations, particularly given the changing US trade policy stance. The muted response in the stock market mirrors a larger wariness about India's export-oriented industry and their capability to take bumps from changing policy trends worldwide. With earnings season looming, volatility could continue to reign, keeping investors wary of the long-term implications of US-India trade dynamics.
 

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