TCS Share Price Declines Amid New US Tariffs

Market Performance

Tata Consultancy Services (TCS) shares declined by 3.51% to ₹3,419.70 on the National Stock Exchange (NSE) at 11:55 AM, following the newly inaugurated US president's announcement of a 27% tariff on Indian imports. The stock dropped ₹124.25 from its prior close of ₹3,543.95, reaching an intraday low of ₹3,416.

Impact of Tariffs on Indian Exports

The US administration has introduced a 10% baseline tariff on imports from all nations, with specific additional tariffs targeting certain trading partners. The 27% tariff for India will apply to various sectors, including processed food, textiles, gems, electronics, and chemicals. However, specific categories, such as pharmaceuticals, semiconductors, and energy products, are exempt from this measure.

IT Sector Under Pressure

Although these tariffs do not directly target the IT sector, concerns arise over potential reductions in client spending. With the US being a major market for Indian IT firms, the new trade policy introduces uncertainty regarding future demand and revenue stability. Industry projections indicate a moderate growth outlook of 2.5-4.5% for major players in the sector.

Company Outlook

TCS is scheduled to release its earnings report on April 10, 2025. As the earnings season nears, market sentiment remains cautious, with investors closely monitoring how these tariff measures impact India's export-oriented businesses.

Summary

TCS shares declined following the US government's announcement of a 27% tariff on Indian imports. While specific sectors remain exempt, industries with significant US exposure may face challenges. The IT services sector could experience indirect effects due to shifts in client expenditure. With TCS set to report earnings soon, market volatility is expected as stakeholders assess the broader implications of the new trade policy.