Mumbai Sees Sharp Drop in Nifty IT Index as US Fed Anticipated to Slow Down Rate Cut Pace
In a dramatic turn of events, the Nifty IT index plummeted by over 3% in early trading hours today, November 18, 2024, as investors speculated that the US Federal Reserve is likely to slow down its pace of rate cuts.
According to market analysts, the uncertainty surrounding the Fed's decision has sent shockwaves through the global market, with tech stocks bearing the brunt. The Nifty IT index, which tracks the performance of IT sector companies listed in India, saw a sharp decline amidst muted investor sentiment.
The US Fed's decision is closely watched by investors worldwide, as it can significantly impact global interest rates and economic growth. With the central bank slated to announce its policy decision later in the day, market participants are holding their breaths.
Industry experts attribute the sharp drop in IT stocks to concerns about a potential slowdown in technological advancements and decreased demand for tech companies. "The recent surge in the stock market has created some hype around IT sector companies," said Rohit Sanghi, Head of Indian Markets Research at brokerageage firm Ashish Chordia Investment Pvt Ltd. "However, investors are being cautious due to concerns about earnings growth and valuations."
As the market continues to volatile, investors are advised to remain vigilant and monitor all updates on this developing story.
Live Updates:
- 12:54 PM IST: NSE's Nifty IT index is down 3.1% at 15,500 levels.
- 12:45 PM IST: Share prices of tech majors decline in tandem with NIFTY IT index.
- 12:30 PM IST: Reliance Industries leads the pack among winners, followed by Infosys, Tech Mahindra, and HCL Technologies.
Stay tuned for live updates as this story continues to unfold.