Why India's IT Sector Is Feeling the Heat Amid US Tariff Worries

India's $283-billion IT sector is staring at a tough year amid U.S. tariff concerns.

Tariffs spark fresh worries

IT firms may feel the heat as manufacturing, logistics and retail sectors, adjust to the new tariffs, according to Reuters report.

Budget cuts

Bernstein and ICICI Securities downgraded the Indian IT sector shortly after the tariff news broke.Brokerages rush to downgrade sector outlook Bernstein and ICICI Securities downgraded the Indian IT sector shortly after the tariff news broke.

Brokerages rush to downgrade sector outlook

The sector had pinned hopes on a recovery in U.S. demand, but fresh trade tensions could derail that.

Hope on revival now under threat

The U.S. contributes over half of India's $190 billion software exports, making the sector highly vulnerable, reported Reuters.

Heavy U.S. dependence a key risk

J.P. Morgan lifted U.S. recession chances to 60% post-tariff move, fuelling further uncertainty.

J.P. Morgan raises alarm on recession

At least six analysts expect IT firms to offer conservative guidance when earnings start next week.

Muted revenue guidance expected

Firms relying on discretionary IT spending are likely to bear the brunt of the slowdown, analysts said.

Discretionary spend exposure a key concern

Firms relying on discretionary IT spending are likely to bear the brunt of the slowdown, analysts said.

Discretionary spend exposure a key concern

Nifty IT index plunged 3.6% on Friday, capping a weekly fall of 9.15%-its steepest in over five years.

IT stocks suffer worst week in years

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