US Tariffs and Changing Valuations in Indian IT

Moody’s report highlights that US tariff policies pose varying risks for South and Southeast Asian companies, particularly in automotive, steel, and chemicals. While IT services firms like

and are not directly impacted, potential changes in US immigration policies could affect talent availability, with Indian nationals receiving nearly 75% of H-1B visas in 2023. To mitigate risks, TCS, Infosys, and Hexaware have increased onshore hiring in the US. On the valuation front, , which historically traded at a premium, now trades at 21.9x its one-year forward earnings, lower than (23.2x) and (22x), as per Bloomberg. Year-to-date, Infosys shares are down 16.2%, TCS declined 15%, and HCL Tech fell 20%, with the Nifty IT Index dropping 21%. Please direct message me, as I won’t be able to respond to each comment individually. Follow me for more such updates, Thank You!