IT stocks may face up to 38% downside amid Trump tariff shock, says Kotak Institutional Equities

Indian IT stocks are back under pressure as fears of a US-led recession are gaining traction following President Donald Trump’s announcement of sweeping “reciprocal tariffs” on over 180 countries. The United States remains the most critical market for Indian IT services, and any slowdown in that economy is expected to significantly dampen sector growth.

Analysts at Kotak Institutional Equities have now sounded a fresh warning, projecting a potential downside of up to 38 percent in Indian IT stocks if the global economy tips into a tariff-induced recession.