False tariff rumor triggers sell-off in Indian IT stocks
What's the story
Indian IT stocks witnessed a major sell-off in today's session. The fall was triggered by unverified reports that US President Donald Trump is considering imposing tariffs on India's IT sector. The Nifty IT index declined as much as 2.5% when the unconfirmed reports first surfaced. However, both Reuters and Bloomberg have denied these rumors, stating they have not reported anything about Trump's alleged plans to impose tariffs on Indian IT.
Misinformation clarification
Redbox Global first reported on Trump's possible tariffs
Redbox Global was the first outlet to report on Trump's possible tariff imposition on Indian IT firms. It has since retracted its claim. The company clarified that the information was not sourced from Reuters but rather from opinions and discussions on a local news channel. This clarification was aimed at correcting misinformation regarding the situation with IT stocks in India.
Market impact
Nifty IT index closes in red
After clarifications from various news outlets, the Nifty IT index recovered from its intraday low but still ended the session in the red, down 1.33%. Leading IT stocks such as Infosys, TCS, HCLTech, and Tech Mahindra fell by up to 1.6%. Midcap IT stocks, including Persistent Systems, Mphasis, and Coforge, declined by as much as 3%.