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

Mumbai, November 18, 2024: The Nifty IT index plummeted by over 3% in morning trade on the Bombay Stock Exchange (BSE) today, amid expectations that the US Federal Reserve is likely to lower the pace of rate cuts in its upcoming monetary policy review.

The benchmark Nifty 50 index dropped 2.17% to close at 18,423.40 points, with all sectors in the red except for pharmaceuticals and healthcare stocks.

Analysts expect the US Fed to keep interest rates under control for now but hint at a slowdown in rate cuts, citing inflation concerns. The news had a significant impact on Indian IT major's stock market performance.

In related news, currency markets remained calm while benchmark indices ticked higher, tracking global cues due to a mixed bag of numbers from the US where both the unemployment and manufacturing data came in on expected lines despite lower GDP growth.