Market Alert: Nifty IT Index Slips Over 3% Amid Speculation of US Fed Rate Cut Pace Reduction

Mumbai, November 18, 2024 - 12:54 IST

The Indian stock market witnessed a sharp decline in the Nifty IT index on Monday, slipping over 3% as investors anticipate a possible slowdown in the pace of rate cuts by the US Federal Reserve.

According to market analysts, the possibility of a reduced pace of rate cuts by the USD Fed has cast a gloomy spell on the Indian stock market. This sentiment has had an adverse impact on technology stocks, particularly those from the Nifty IT index, which has taken a hit due to declining expectations of growth in this sector.

The Nifty 50 index had slipped about 200 points during the morning trading session, while the broader NSE 50 index declined by over 100 points. The benchmark indices have since remained subdued amidst these negative sentiments.

Investors are watching closely for any developments that would clarify the USD Fed statement on monetary policy, which was due to be released later in the day. The rate-cut pace has been a topic of discussion among investors globally, with its implications extending to emerging markets such as India.

Market indices continued their downward trend during late afternoon trading, but managed some last minute recovery with selling easing before closing for the day.

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