Nifty IT Index Slips Over 3% as US Fed Likely to Lower Pace of Rate Cuts

Nifty IT Index Slips Over 3% as US Fed Likely to Lower Pace of Rate Cuts

Mumbai, November 18, 2024 - The Indian stock market took a hit today, as the Nifty IT index plummeted over 3% amidst expectations that the US Federal Reserve would slow down its pace of rate cuts.

According to market analysts, the sudden move in the IT sector was attributed to concerns over a slowdown in emerging markets and weak earnings reports from several major technology companies. This has led investors to reassess their growth estimates and invest in more stable sectors such as financials.

Meanwhile, in the global markets, the Fed's decision is expected to be announced later today, with most economists predicting that an interest rate cut is likely. However, not everyone agrees on the extent of the cut, which could impact market sentiment globally.

As the Indian stock market reacts to these developments, investors are keeping a close eye on key sectors such as IT and financials for potential opportunities.

The current NSE-Stock Exchange Traded Fund (ETF) index is NIFTY 50, while Bhavesh Agarwal, President at Bajaj Capital, explains here how it could play out.