Nifty IT Index Sees Over 3% Slump Amid US Fed Rate Cut Speculation

Mumbai, November 18, 2024: The Nifty Information Technology (IT) index plummeted by over 3% in morning trade on Monday, citing worries that the US Federal Reserve's decision to lower interest rates may have a negative impact on the sector.

Markets are expecting the Fed to signal caution on further rate cuts during its upcoming policy meet. A slowdown in global growth and declining investor sentiment due to rising inflationary pressures have allayed hopes of more aggressive monetary easing, leading investors to cut their expectations for future rate reductions.

According to market analysts, the decision is likely to be cautious, indicating a possible shift from a dovish stance seen earlier this year. The IT sector was expected to face selling pressure as weak demand and slowing down of growth in economies affected by global headwinds impact stock prices.