Domestic technical shares came under considerable sales pressure in July, with the failure to extend their bullish rally for the third consecutive month as a bearish earnings, a revival of global trading tension, warning about future growth and signs of restructuring, and investors led to investors from the sale of the sale. Analysts also revised their strike price shift for most stocks, including top industry giants, which further put the total sector under pressure. All ten ingredients of the Nifty IT index closed the month with negative returns, and four of them delivered double-digit losses. HCL Technologies was the worst performer and lost 15% of its value, followed by persistent systems, which fell by 14.6%. Wipro and Infosys also closed the month with 6% and 6.7% respectively. Tech Mahindra and TCS each fell 13% in July. Only Mphasis and Ltimindree managed to end the month with light losses. With heavyweight shares underperforming sharply, the index finished with 9.4%this month, which was the biggest monthly decline since February 2025 and the second largest decline of the year. Top IT firms end Q1 with a single-digit growth growth that ended the country’s top-tech businesses the June quarter with subdued performances, as Indian IT Giants reported year-on-year turnover growth of 0.8% to 8.1%. Tata Consultancy Services (TCS) has missed quarterly income estimates as customers have remained cautious about non-essential spending amid US tariff-related uncertainty. The turnover showed 1.3% to £ 63,437 crore, while the net profit rose 5.9% to £ 12,760. The Tech Bellskether also announced that it would cut 2% of its workforce, or about 12,000 posts, in FY2026. The company said the dismissal is part of the broader strategy of the business to become a ‘future organization’, focusing on investments in technology, AI deployment, market expansion and workforce employees. Hcltech reported a profit in June quarter to analysts and lowered the forecast of operating margin for FY2026. The turnover grew by 8.1% to £ 30,349 crore, but the profit fell 9.7% to £ 3.843 crore due to higher expenses and a one-time impact of a customer bankruptcy. Infosys saw turnover increased by 7.5% to £ 42,279 crore, while the net profit rose 8.6% to £ 6.921. Wipro’s topline grew slightly by 0.8%, but there was a successive 1.6%decline. In constant currency conditions, the company gave successive guidelines of -1% to 1%. Tech Mahindra achieved 2.65% turnover growth to £ 13,351.2 crore, with the net profit rising 33.9% to £ 1,140.6 crore. Tariff pressure is likely to weigh new offers. The demand prospects for India’s $ 283 billion IT sector remain uncertain due to US tariff risks and broader geopolitical factors. Indian technical giants started the year with great hope of pro-growth policy of the Trump administration. However, a series of tariff-related announcements soon dampened the investor sentiment, causing the fear of a possible US economic slowdown caused by trade wars to lead to less IT trade. US President Donald Trump’s inconsistent tariff policy has created confusion about their global economic impact and the hope of a revival in the confidence and spending of clients in India’s largest IT export market. In a survey in May, it was shown that two out of five technical managers postponed discretionary projects. Trump imposed a 25% tariff on Indian imports on Wednesday, along with an unspecified fine. Analysts warn that this move could increase the costs for US customers and in turn could reduce spending. The global brokerage firm CLSA says ambiguity around US rates causes clients to delay decisions. Customers are now prioritizing chips and cloud spending regarding outsourcing IT services, it reads. In addition, the ongoing tariff tension has also affected the US Federal Reserve policy decisions, as the central bank remains cautious, causing higher rates to damage consumer bags and sharpen inflation. This also led to the policy makers held interest rates for the fifth consecutive meeting in July, despite repeated pressure from the White House to lower the borrowing costs. Disclaimer: The views and recommendations given in this article are those of individual analysts. This does not represent the views of coin. We advise investors to check with certified experts before making investment decisions.
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