Nifty IT Stocks Fall: Here’s what triggered a sharp slide in Infosys, TCS and peers within minutes

Indian IT stocks have seen extreme moves in the last few minutes on Friday, September 4, after unconfirmed reports indicated that US President Donald Trump plans to impose tariffs on India’s IT sector, citing a flash from Bloomberg.However, CNBC-TV18 reached out to Bloomberg for a confirmation on the story, to which, Bloomberg denied saying they have not reported any such story.

“We Have Not Reported Anything Related To Trump’s Plan To Impose Tariffs On Indian IT,” Bloomberg’s response stated.

Redbox Global, which first reported about this citing a Reuters story, later issued a clarification, saying that reports were not from Reuters but from opinions / discussions held by a local news channel.

Correction: Reports of Trump imposing tariffs on Indian IT firms were not from Reuters. It was an opinion/discussion aired by a local news channel. We apologise for the confusion. ????????

— RedboxGlobal (@RedboxWire) September 5, 2025

Another trigger for the pressure on IT names could be the results of another global peer Endava, who not only reported a weak fourth quarter, but also said that constant currency revenue growth in the first quarter will be a negative 6% to negative 5%, while for the full year, the growth could be a negative 1.5% to positive 0.5%.Endava said hat due to very rapid changes in AI, clients are holding back their large spends and even though the AI pipeline is growing, the conversions are slower.

The US-listed shares of Endava ended 30% lower overnight.

The Nifty IT index fell as much as 2.5% in a sharp fall from the day’s high when the unconfirmed reports first surfaced. The index, despite the recovery from the lows, continues to trade with losses of 1.4%.

Midcap IT names such as Persistent Systems, Mphasis, Coforge are trading with losses between 2% to 3%, while largecap names like Infosys, TCS, HCLTech and Tech Mahindra are down between 1% to 2%.

This is a developing story.