NIFTY IT INDEX SLIPS OVER 3% AS US FED LIKELY TO LOWER PACE OF RATE CUTS

The Indian stock market recorded a significant slump on November 18, 2024, with the Nifty IT index witnessing a depreciation of over 3% amid expectations of slower rate cuts by the US Federal Reserve.

According to analysts and market experts, the decision made by the US Fed at its last meeting will likely influence interest rates globally, thereby affecting stocks in various sectors. This was further corroborated by data from global trading floors, which showed signs of panic selling in IT firms.

As a result, investors are adopting a cautious stance while making buying or selling decisions. Several leading market experts have stated that the slowdown in rate cuts by the US Fed will lead to uncertainty and caution among businesses in India and other countries.

In terms of stocks with high trading volumes, some prominent companies belonging to the IT sector saw share prices plummet. Stocks like Infosys Ltd. (BSE: 54194) down by 2.3%, Tech Mahindra Ltd. (NSE: TEL), shares slipped by 2.5%.

Other key market indicators also witnessed a downturn today - the Sensex, which is the benchmark index for India's equity markets, decreased 0.35% while investors are eyeing developments that would bring any further guidance from major countries on monetary policy to come at this moment. While shares of banks were steady despite overall market declines, experts said this will depend on actual outcome once the Fed makes its latest announcement.

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