Nifty IT Index Plunges Over 3% as Investors Await US Fed's Rate Cut Decision

Mumbai, November 18, 2024: The Indian stock market witnessed a significant downturn in the morning session today, with the Nifty Information Technology (IT) index plummeting over 3% following a series of downward leads from global markets.

According to sources close to the Federal Reserve, the United States central bank is likely to tone down its interest rate-cutting pace at its upcoming meeting next week. The news sparked widespread concern among investors and analysts, leading to a sharp decline in equity market indices.

Markets across Asia, including India, have witnessed significant selling pressure with stocks tracking the Fed's move falling sharply. In particular, the Nifty IT index fell over 3% to close at 13,150 points with most key stocks in the sector plummeting between 5-15%. Infosys (5%), tech-enabled services major Tech Mahindra (8%) Wipro (6%), Flipkart owner eCompliances Inc. is facing pressure (17%), while Mindtree (11%) registered a significant loss of its value.

Market analysts expect that once the news is officially announced, the Indian stock market will likely follow suit amidst concerns of rising inflation and a slowdown in global demand.

"With the likelihood of rate cuts slowing down at the US Fed meeting next week, investors are becoming increasingly risk-averse," said [Analyst name] at [Brokerage house], explaining the cause behind today's downturn.

The current scenario paints an uncertain outlook for markets going forward amidst increasing signs that monetary policy changes may continue to hold sway over economic conditions.