Nifty IT Index Slips 3% Amid Fears of US Fed Rate Cut Pace Reduction

Mumbai, November 18 (ANI): The Nifty IT index plummeted by over 3% in morning trade on Monday, as investors anticipated a possible reduction in the pace of interest rate cuts by the US Federal Reserve. This move is part of efforts to combat inflation and curb rising dollar prices.

The market was tracking developments related to Thursday's meeting of the US Fed at 14:00 UTC (5:30 am IST). With concerns regarding soaring inflation rates, which have peaked in several countries including India for four years now reaching a decade-high last month, analysts expected the central bank to signal its reduced pace of rate reduction.

The S&P BSE IT Index, which tracks the performance of domestic and international IT stocks, saw significant downward moves, with major constituents such as Infosys, Wipro and Tech Mahindra leading the drop. The index currently traded at 17,439 for a fall of 2%, with over 200 million shares changing hands in morning trade.