Nifty IT Index Plunges Over 3% as Investors Cautiously Watch US Fed's Rate Cut Hike

Mumbai, November 18, 2024: The Nifty IT index suffered a significant dip of over 3% in early trades on Monday, sending shockwaves through the Indian stock market. The decline came ahead of the highly-anticipated December Federal Reserve meeting, where investors are bracing themselves for an easing of pace of rate cuts.

According to analysts, the US Fed's decision is expected to have a ripple effect on global markets, leading to fluctuations in equity prices globally. "The recent trend shows that investors have been getting cautious about future prospects", said Ramesh Jain, Chief Investment Officer at CentUM Financial Services.

As stocks took a beating, the Sensex index fell by over 400 points while the Nifty50 benchmark fell below the psychologically crucial 18,000 mark.

In early trades, top IT stocks like Infosys (down 3.5%), Wipro (down 4.1%), and HCL Technologies saw a sharp decline. "Given the uncertainity surrounding the US Fed's meeting outcome, investors are choosing to exercise caution while some sellers were seen taking aggressive positions", said Shalabh Mathur, Senior Equity Analyst, at Dolaprade.

The Nifty IT index's loss was largely attributed to stock-specific concerns and weakness in large-cap stocks.