February 28 witnessed a sharp decline in IT stocks as concerns over US President Donald Trump’s fresh tariff threats rattled investor sentiment. The Nifty IT index extended its losing streak for the seventh consecutive session, dropping over 4% to 37,318.30. Adding to the market turbulence, higher-than-expected US weekly jobless claims raised fears of an economic slowdown, while Nvidia’s Q4 results further dampened investor confidence.
Among the hardest-hit stocks, Tech Mahindra tumbled over 6% to close at ₹1,485.95, marking a nearly 12% decline in the past month. Wipro and Mphasis lost over 5% each, while Infosys and LTI Mindtree dropped more than 4%, dragging the overall IT index down. Persistent Systems, HCL Tech, and TCS fell over 3%, with L&T Technology Services and Coforge slipping more than 2%.
Market experts cite Trump’s proposed 25% tariff on Mexican and Canadian goods, an additional 10% duty on Chinese imports, and Nvidia’s mixed earnings report as key factors driving the sell-off. Additionally, foreign outflows and weak global cues continue to exert downward pressure on IT stocks.