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

Mumbai, November 18, 2024 - The Nifty IT index took a sharp downward turn on Monday afternoon, falling over 3% amid expectations that the US Federal Reserve is set to lower its pace of rate cuts.

The sell-off in the tech sector was attributed to the possibility of the Fed scaling back its monetary stimulus for the US economy. This move has been seen as indicative of a slowing down of interest rates, which could impact global stock markets.

According to market analysts, investors are cautiously awaiting the Fed's stance on future rate cuts amid signs of economic slowdown in various countries.

The NIFTY IT index was one of the most affected sectors with a 3.2% decline at 12:30 IST. Top gainers and losers in the IT sector include TCS (down 4.9%), Infosys (down 5.6%), TechMahindra (-7.1%), and WIPRO (up just 0.2).

Market analysts are pointing out that any rate cut by the US Fed would also positively impact India's growing tech industry.

The S&P BSE IT was down 3,125.59 points from its day's opening level of 6,841.89 points around 11:30 IST.

Meanwhile, on global grounds, global stock markets showed mixed trends, but many are expecting calm trade today ahead of the US Fed meeting.

However, not all analysts see a major impact to Indian share prices if the US lowers interest rates. While some agree that this move would be beneficial too in order to attract foreign investors.

Overall market movements remain under a watch as the upcoming global and national holidays have led to low buying power among most retail consumers.

Market stocks were trading flat with no clear gains or losses around 12:00 IST.

Stay tuned for further updates.