FED Rate Cut Odds: Nifty IT Index Takes a Plunge Over 3% as Investors Await US Federal Reserve Decision

Mumbai, November 18, 2024 - The Nifty Information Technology (IT) index suffered a significant decline of over 3% in the mid-afternoon trading session today, amid growing anxiety among investors regarding the upcoming decision by the US Federal Reserve.

According to market analysts, the Fed is expected to lower its pace of rate cuts, which could have far-reaching implications for global financial markets. The anticipated move has been affecting investor sentiment, leading to a sharp decline in IT stocks, including giants such as Infosys and TCS.

Investors are closely watching the developments in the US, awaiting the Fed's decision on interest rates and future policy cues that may steer global market trends. Market participants expect the Fed to adjust its stance mid-2025, signaling stronger headwinds for equity markets worldwide.

As markets reacted strongly to concerns over the potential slowdown of rate cuts, benchmark indices were also experiencing volatility in Asian markets. With stocks trading down by several percent, Asian investors were bracing themselves for a likely downturn in global economic growth.

Markets are expected to be on edge as the Fed announcement is set to impact investor sentiment globally. The Nifty IT index will be closely observed by market strategists, who expect major companies such as HCL Technologies and Wipro to face challenges resulting from the rate cut odds affecting equities values.

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