Nifty IT Index Slips Over 3% Amid US Fed Expected to Lower Pace of Rate Cuts

Mumbai, Nov 18 (ANI): The Nifty IT index plummeted by more than 3% in the afternoon trading session on Monday, as investors reacted to growing concerns that the US Federal Reserve might slow down its aggressive pace of interest rate cuts.

As of 12:30 pm IST, the NSE was witnessing intense volatility, with stocks from leading IT majors like Infosys, Wipro, and Cognizant seeing significant declines. The Nifty IT index, which is a benchmark for the country's technology sector, had dropped over 3% in the last hour of trading.

The US Federal Reserve is likely to announce its interest rate decision later on Monday, which has raised concerns that it might slow down its rate-cutting spree. This uncertainty has sent shockwaves across global markets, including the Indian stock market.

In the last few months, the NSE had witnessed a surge in IT stocks, driven by optimism over the sector's prospects. However, with the US Federal Reserve expected to scale back its aggressive pace of interest rate cuts, investors are now becoming cautious about the sector's performance.

"We expect the Nifty IT index to remain under pressure for some time, as investors get overconfident about the sector's growth prospects," said Karan Taurani, Head of Research at Anand Rathi Shares & Securities.

The decline in the Nifty IT index has had a knock-on effect on other indices as well. The NSE 50 index and the Banking Index are also down by more than 2% each, indicating a broader market sell-off.

Market experts point to the US Federal Reserve's announcement of interest rate cuts over the past few months as a major driver behind the recent rally in IT stocks. However, with rates now expected to be kept on hold or even rise slightly, investors are feeling apprehensive about the sector's growth prospects.

We'll keep you updated on any further developments and will provide you live coverage of the market action as it happens. Stay tuned!