Nifty Drops Over 3% as Investors Eye US Fed's Rate Cut Decision
Mumbai, Nov 18 (PTI) - The Nifty IT index plummeted over 3% on Monday due to a spike in US Fed's inflation rate, which has fueled speculations about the central bank adjusting its aggressive pace of interest rate cuts.
According to market analysts, if the Fed decides to slow down its rate-cutting cycle, it could impact Asian stock markets positively. However, any move by the US Fed to raise rates would put downward pressure on Indian equities.
As the country prepares for its upcoming elections, traders are adopting a cautious stance and diversifying their investments. Several top-listed IT stocks in the Nifty 50 index saw significant declines on Monday, including Infosys, Wipro and Tata Consultancy Services (TCS).
The benchmark NSE indices were at an all-time high in October but since then have witnessed a decline of around 3-4%. Traders believe that investors are selling their long-held positions ahead of the general elections.
The market trends indicate that traders are betting on inflation concerns from the US Fed's decision to reduce bond purchases and its commitment to three-quarters of a rate hike cycle.
This article is available in Mint: [link]
Follow us for more updates and analysis:
Please note: The Nifty 50 index stands at an all-time high, despite witnessing decline since October. The Indian stock landscape has been influenced by macroeconomic factors like inflationary pressures in the US Fed.
The article does not reflect current market conditions but provides a perspective based on analyst expectations.