Nifty IT Index Dives Over 3% Amid Speculation of Prolonged Gradual Rate Cut by US Fed

Mumbai, November 18, 2024: The Indian stock market witnessed a sharp decline in the Nifty IT index today, plunging over 3% due to expectations that the US Federal Reserve is likely to scale back its pace of rate cuts.

According to analysts' predictions, the US central bank will cut interest rates at a forthcoming meeting but may still maintain a hawkish stance. This development has sent shockwaves through global markets, including Indian equities.

Investors are now increasingly pessimistic about the slowdown in economic growth and earnings prospects for IT companies, leading to a sell-off on Dalal Street. Top tech stocks such as Infosys, Wipro, Tata Consultancy Services (TCS), and HCL Technologies led the decline, with Infosys plummeting 5% and TCS shedding 4%.