Nifty IT Index Plunges Over 3% Amid Speculation Over US Fed Rate Cut Plans

Mumbai (Alayaran.com, November 18, 2024)- The Nifty IT index saw a whopping 3.2 percent slump in early trade on Monday morning as investors took a cautious stance ahead of the US Federal Reserve's latest policy decision.

As of 11:30 am IST, with over an hour to go in the trading session, Nifty IT Index breached the key level of 18,000, eroding over 300 points. The sector's benchmark index is already expected to witness a downward trend on Monday as investors anticipate that the US Federal Reserve may scale back its rate-cutting measures.

"The market is getting anxious ahead of the Fed's policy decision today," said Harsh Chopra, senior analyst at ANZ. "Given the recent decline in bond yields and falling stock prices, it makes sense for the Fed to slow down its rate hikes unless they get new inflation data that suggests a rebound."

Investors are closely watching the US Federal Reserve's announcement on interest rates, which is expected later today. This decision could have significant implications for global markets.

The NSE 50 index and S&P BSE 500 are also under pressure in early trade, down about 0.15% and 0.5%, respectively.

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