Those stocks have seen the worst monthly decline in 5 years. Wasn’t the air of optimism months ago?

Those stocks saved the sale of the sale in February as the BSE IT index was the highest in 5 years. These emotions have become sour on the tech pack for various reasons, including the fear of trade war and rising inflation.

The Gauge of Listed Software Fatware Companies, the BSE IT index fell by about 13% in February. The last time the stocks lost a lot was in the epidemic age. In the last fifteen years, the index fell in double-digit only five times and made one of February.

This recession can be surprising because there were expectations of a re -recovery procurement boom, mainly behind macro conditions and improving consumers’ costs. IT companies faced volatility over a period of 1-2 years as consumers reduced costs due to poor demand.

It depends greatly on global macro conditions for the US and other Western customers to receive a significant portion of their income. Geographical political stability, in this case, will lead to any potential risks for tariff wars, anxiety of recession.

This time, US President Donald Trump announced a 25% tariff on imports from Canada and Mexico, from March 4, with the proposed tariffs on China, increasing the danger of global trade war.

Analysts say that this uncertainty has adversely affected the spirit of investors worldwide. Market feelings, especially IT packs, have become wet as investors weighed the impact of NVIDIA’s guidance on the extensive technical landscape.

In addition, the latest volatility in Nasdaq Tech stocks has increased caution, increasing sales pressure in domestic IT counters.

Since the top of the market in late September, foreign investors withdrew about $ 25 billion from Indian equity in February with $ 1 4.1 billion.

Puneet Singhania, director of Master Trust Group, said concerns about high evaluation and poor economy have promoted this significant capital flight.

There are also concerns that some companies, which were forming at least 25 or 26 large orders coming from AI, can come for disappointment.

“That is why the capex that is likely to be in the US, is coming under question and that is why we are seeing such problems in the US and Nasdaq. Therefore, I am saying it is too early to say, but definitely a questionable sign about the big capex that is likely and then outside commands.

Earning

In the recent third quarter, IT companies introduced a mixed picture in the seasonal weak quarter, which has an average income growth
1.8% quarter-on-quarter (QOQ) in continuous currency terms.

Motilal Oswal said that guidance upgrades by big companies are disappointing and the expectations of revenue for the financial year 26/FY 27 have been lacking on the street.

“However, the comments in some pockets have become more positive. We believe that tech costs are again expanded in the last six months, mainly by BFSI, now expanding other ICALS such as Heatech and Retail,” Dalal said.

In this quarter, Deal Win trends indicate a gradual rebound in a short -term deal, indicating the compensation of discretionary costs by consumers and determining the stage for modified income conversion.

Motilal believes that the cycle is slowly rotating (J-Krub may not be recovery) because consumers are starting to re-invest their savings from cost-rise programs to reduce technical debt.

What should investors do?

Analysts say that its dependence in global markets means that stocks in the near term are in the U.S. And will move further towards what happens in other Western countries. How currencies behave and other things will weigh. “Obviously when the whole market comes down, then people sometimes, they always pay attention to your IT services,” Prabhudas Liladhar’s Eminish Agarwal said a few days ago.

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)