&w=3840&q=100)
Mphasis, Infosys, TCS shares drop upto 7%; why are IT stocks falling today?
IT stocks down today: Information Technology (IT) stocks were edging lower in trade on Monday, June 2, 2025 after the US asserted that reciprocal tariffs "were not going away".
The Nifty IT index fell 1.4 per cent intraday to hit a low of 36,770.15. Among individual stocks, Mphasis tumbled 6.7 per cent, Persistent Systems and HCL Tech 1.8 per cent each, Tech M 1.7 per cent, Infosys 1.5 per cent, and Wipro 1.4 per cent.
Why are IT stocks falling today?
The decline in IT stocks today came after US President Donald Trump's Commerce Secretary Howard Lutnick said on Sunday that the "reciprocal tariffs were not going away"
Notwithstanding the legal battle surrounding Trump's authority to impose the sweeping tit-for-tat tariffs against the US' trading partners to "fix" the trade deficit, Lutnick said the tariffs will continue to stay in place despite the legal challenges. The administration, he said, will otherwise find new ways to implement them.
Notably, the US Court of International Trade struck down much of the president's steep levies last week, which got reversed a day later by a federal appeals court.
US officials said they remain committed towards imposing reciprocal tariffs either in their original form, or figure out 'alternative ways' to "restore the trade imbalance" of the US with other countries.
In fact, last Friday, US President Donald Trump announced to raise tariffs on steel imports from 25 per cent to 50 per cent, effective June 4, highlighting that he is not backing down from imposing tariffs.
Relation between US tariffs and IT stocks
The imposition of US tariffs is negative for the Indian IT industry. This is because analysts fear that Trump's tariffs could be inflationary for the US economy, which may force the US Federal Reserve to keep interest rates higher for longer, leading to a slowdown in the economy.
The US, on its part, is a big market for outsourcing for the Indian IT industry. Hence, any slowdown in the US economy has a direct negative impact on Indian IT companies' earnings growth.
Remember, the 10-year US Treasury yield climbed 24 basis points (bps) to 4.4 per cent in May, raising concerns that bond markets are pricing in a ballooning US fiscal deficit alongside mounting macroeconomic and policy uncertainty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
12 minutes ago
- Hindustan Times
US-backed Gaza aid group names evangelical as chairman
* GHF says it has delivered some 7 million meals in Gaza * UN refuses to work with GHF, says aid distribution militarized * Israel accuses Hamas of stealing aid, Hamas denies it UNITED NATIONS, - The U.S.-backed Gaza Humanitarian Foundation on Tuesday named as its executive chairman an American evangelical Christian leader who has publicly backed President Donald Trump's proposal for the United States to take over the Palestinian enclave. The appointment of Rev. Dr. Johnnie Moore, a former evangelical adviser to the White House during Trump's first term in office, came as health officials said at least 27 people died and more than 150 were injured trying to reach a GHF aid site. "GHF is demonstrating that it is possible to move vast quantities of food to people who need it most — safely, efficiently, and effectively," Moore said in the foundation statement. "GHF believes that serving the people of Gaza with dignity and compassion must be the top priority." The GHF began operations one week ago under a distribution model criticized by the United Nations as the militarization of aid. The GHF says so far it has given out seven million meals from so-called secure distribution sites. It uses private U.S. security and logistics companies to get aid into Gaza. The U.N. and aid groups have refused to work with the GHF because they say it is not a neutral operation. U.N. aid chief Tom Fletcher has said it "makes aid conditional on political and military aims" and uses starvation as "a bargaining chip." The appointment of Moore could fuel U.N. concerns, given his support for the controversial proposal Trump floated in February for the U.S. to take over Gaza and develop it economically. After Trump proposed the idea, Moore posted video of Trump's remarks on X and wrote: "The USA will take full responsibility for future of Gaza, giving everyone hope & a future." 'BAD GUYS' The U.N. did not immediately respond to a request for comment on the appointment of Moore, who has accused the U.N. of ignoring "bad guys" stealing aid in Gaza. The U.N. has long-blamed Israel and lawlessness in the enclave for impediments getting aid into Gaza and distributing throughout the war zone. Israel has long accused Hamas of stealing aid, which the group denies. In a reference to the new GHF-led aid model, Israeli Prime Minister Benjamin Netanyahu last week said Israel was "taking control of food distribution" in Gaza. "The @UN & others should clean up their act & work with America," Moore posted on May 26. "Surely, these old U.S. & E.U.-funded humanitarian orgs won't let people starve in exchange for being 'right' when they know what they have done hasn't worked & has, in fact, made a terrible war worse?" The war in Gaza has raged since 2023 after Hamas militants killed 1,200 people in Israel in an October 7 attack and took some 250 hostages, according to Israeli tallies, and Israel responded with a military campaign that has killed over 54,000 Palestinians, according to Gaza health authorities. Moore visited Israel about three months after the 2023 Hamas attack and wrote: "Never have I seen such horror." Just a couple of weeks later, he posted a video titled "Come visit beautiful Gaza," which sought to portray Gaza as a tourist destination if it wasn't for Hamas militants. Trump has said Gaza has the potential to be "The Riviera of the Middle East." The United Nations has long endorsed a vision of two states living side by side within secure and recognized borders. Palestinians want a state in the West Bank, East Jerusalem and Gaza Strip, all territory captured by Israel in a 1967 war with neighboring Arab states.
Indian Express
17 minutes ago
- Indian Express
Report flags tiger-human conflict risk as prey base shrinks in Jharkhand, Chhattisgarh and Odisha
Even as India celebrates a rise in its tiger population, a new national assessment has flagged an emerging conservation challenge: some of the prey species that sustain these big cats — chital (spotted deer), sambar (large deer), and the vulnerable gaur (Indian bison) — are declining across key tiger landscapes in east-central India, particularly in Odisha, Jharkhand and Chhattisgarh. These findings come from a first-of-its-kind assessment of ungulates (hoofed mammals) conducted by the Wildlife Institute of India (WII) and the National Tiger Conservation Authority (NTCA), using data from India's 2022 tiger census. Ungulates form the bulk of a tiger's diet and are also critical to the forest ecosystem. Yet, across tiger habitats in these regions, they are facing increasing pressure from loss of habitat due to deforestation, development, agricultural expansion, urbanisation, human-wildlife conflict, and subsistence hunting. The report points to the broader consequences, drawing a direct link between low prey numbers and human-wildlife conflict. 'High bushmeat consumption and civil unrest in the region negatively impact wildlife presence, leading to low ungulate densities,' the report notes on Odisha. 'Palamau (in Jharkhand), an important part of the Central Indian corridor, faces challenges such as Left Wing Extremism, which affects wildlife presence,' it says. To revive prey populations, the report recommends on-site breeding of chital and sambar in secure enclosures designed to keep out predators. However, even as eastern and central Indian states are seeing prey depletion, several other landscapes show healthier trends. The Shivalik Hills and Gangetic plains — from Uttarakhand and Uttar Pradesh to eastern Bihar — as well as tiger reserves in Madhya Pradesh and Maharashtra have a stable prey base. In the Western Ghats, chital, sambar, wild pigs, gaur and barking deer are widely distributed, while the hog deer and wild pigs dominate in the Northeast. The report Status of Ungulates in Tiger Habitats of India is based on field data from the 2022 tiger estimation, supplemented with data from the 2018 and 2014 cycles. While ungulates have been mapped in each cycle, this is the first time their data has been analysed and published separately. Unlike tigers, whose individual numbers are tracked, prey estimation focused on mapping the density of chital and sambar. For other ungulates, scientists estimated where these animals are found and how many there might be, based on direct and indirect evidence such as field surveys, dung trails, and camera trap images. India is home to over 3,600 wild tigers — about 70% of the global population — and their survival depends heavily on prey such as chital, sambar and gaur. Other species in their diet include nilgai, wild pigs, hog deer, barking deer and chinkara. Leopards, wild dogs, jackals and hyenas also rely on the same prey base. 'The quality of forests within 40 per cent of tiger reserves — and outside them — is low. These assessments (of ungulates) are crucial as we have to look beyond the numbers (of tigers). These are measurable biodiversity indicators and can guide us on how to address forest quality on a large scale,' said Qamar Qureshi, wildlife biologist and co-author of the report. According to the report, a density of 30 ungulates per square km can support four tigers in 100 square km. Tiger numbers may rise with prey density, but plateau at about 75 ungulates per sq km due to ecological constraints such as territoriality, competition and lack of habitat connectivity. Among the tiger reserves, Pench in Madhya Pradesh has one of the highest chital densities — nearly 54 per sq km. 'Maintaining quality habitat and reducing pressures on the prey base is crucial. We are working with WII to improve prey density,' said Gobind Sagar Bharadwaj, Additional Director General of Forests (Project Tiger) and NTCA Member Secretary. The report draws a link between low prey numbers and human-wildlife conflict. In areas like Tadoba (Maharashtra) and Ratapani (Madhya Pradesh), tigers are attacking livestock due to the lack of natural prey, sparking conflict with local communities. The report also identifies strongholds of prey abundance. Chital populations were found thriving across clusters like Rajaji-Corbett-Ramnagar-Pilibhit-Dudhwa (Uttarakhand and Uttar Pradesh), Kanha-Pench-Achanakmar (Madhya Pradesh, Maharashtra, and Chhattisgarh), Bandhavgarh-Sanjay Dubri-Veerangana Durgawati (Madhya Pradesh), and the Nagarhole-Bandipur-BRT-Wayanad-Mudumalai-Sathyamangalam landscape (Karnataka, Kerala and Tamil Nadu). These clusters span diverse forest types — from the Terai-Duar savannas to the moist deciduous forests of Central and Southern India. An award-winning journalist with 14 years of experience, Nikhil Ghanekar is an Assistant Editor with the National Bureau [Government] of The Indian Express in New Delhi. He primarily covers environmental policy matters which involve tracking key decisions and inner workings of the Ministry of Environment, Forest and Climate Change. He also covers the functioning of the National Green Tribunal and writes on the impact of environmental policies on wildlife conservation, forestry issues and climate change. Nikhil joined The Indian Express in 2024. Originally from Mumbai, he has worked in publications such as Tehelka, Hindustan Times, DNA Newspaper, News18 and Indiaspend. In the past 14 years, he has written on a range of subjects such as sports, current affairs, civic issues, city centric environment news, central government policies and politics. ... Read More
Deccan Herald
19 minutes ago
- Deccan Herald
Three missing Indians in Iran traced: Embassy
New Delhi: Three Indian nationals who went missing in Iran last month have been rescued, the Iranian embassy in India said on Tuesday, quoting media reports in week, the Ministry of External Affairs (MEA) said it was in touch with the Iranian authorities over the missing Indians.."Three missing Indian citizens freed by Tehran police," the Iranian embassy said in a post on X.."Local media in Iran say police have found and released three Indian men who had gone missing in Iran," it said.
