IT Stocks: After a report, many IT stocks fell by 5%, this is the big reason

The country's top IT stocks are seeing a decline today. After Donald Trump's reciprocal tariff was implemented, brokerage firm Jefferies has issued a note on these IT stocks today. In this note, the brokerage firm has downgraded the rating of TCS, Wipro and Mphasis. Along with this, it has reduced the earnings per share (EPS) estimates by 2-14% for the stocks under coverage, in which Infosys, Coforge and Sagility India were among its favorite stocks.

Jefferies said it would prefer high-growth stocks amid tariff-related uncertainty. It also said the IT sector is unlikely to be re-rated unless the US GDP outlook improves.

Jefferies' view on TCS
The brokerage firm downgraded Tata Consultancy Services' (TCS) rating to 'HOLD' from 'BUY' and lowered the target price to Rs 3,300 per share from Rs 4,530 per share. The new target price implies a marginal 0.2% growth from the previous close.

Jefferies' view on Wipro
Wipro shares were downgraded to 'Underperform' from 'Hold', and the target price was lowered to Rs 210 per share from Rs 310, indicating a downside of over 15% from the previous close. Wipro shares were trading nearly 5 per cent lower at Rs 235 per share following the downgrade. Jefferies' view on Mphasis Jefferies downgraded Mphasis shares to 'HOLD' from 'BUY'. It lowered the target price of the stock to Rs 2,300 per share from Rs 3,250 per share. However, this is 6% higher than the previous close price. Mphasis shares were trading nearly 4% lower at Rs 2,083 per share. Jefferies' view on Infosys, Coforge and Sagility Although Jefferies had recommended 'BUY' on Infosys, Coforge and Sagility India shares, it cut their target prices. The brokerage lowered the target price of Infosys to Rs 1,700 per share from Rs 1,835 per share. The new target price is nearly 19% higher than the previous close price. The target price of Coforge was reduced from Rs 10,350 per share to Rs 7,860 per share, up 21% from its previous close. The target price of Sagility India was reduced from Rs 64 per share to Rs 48 per share, up 23%. The brokerage firm has a 'HOLD' rating on HCL Technologies shares and reduced the target price from Rs 1,900 per share to Rs 1,520 per share

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