New Delhi, Feb. 25 -- Indian technology stocks appear to be caught in a perfect storm, as a series of negative developments-particularly weak economic data from the U.S., where these companies have significant revenue exposure-have rattled investor confidence, leading to a severe sell-off on Dalal Street.

Reports indicate that the U.S.'s series of tariff announcements could lead to price pressure and impact the economy. U.S. consumer sentiment remains weak, and there are fading hopes of multiple rate cuts by the U.S. Fed in 2025. Growing competition from Chinese AI companies has also been weighing on IT stocks.

The Nifty IT Index, which tracks the performance of 10 leading IT companies, tumbled another 1% in today's intraday trade, Febr...