Nifty IT Index Slumps Over 3% Amid Anticipation of US Fed's Rate Cut Pace

Mumbai: The Indian stock market saw a significant decline in the tech sector, with the Nifty IT index plummeting over 3% on Monday, November 18, amid expectations of the US Federal Reserve's decision to scale back its rate-cutting pace.

According to expert analysts, the US Fed is likely to reduce the pace of its interest rate cuts at its upcoming meeting, which could have a ripple effect on the global markets. The news sent shockwaves through the Indian stock market, with investors becoming cautious about the future outlook.

The Nifty IT index, which comprises key players in the IT sector such as Infosys, Wipro, and HCL Technologies among others, saw a sharp decline of over 3% during the morning trading session. This was largely seen as a result of the negative sentiments emanating from Wall Street, where the US shares are heavily influenced by the US Fed's decisions.

"The market is responding to the US Fed's signal that they may be slowing down on rate cuts," said a senior analyst at a Mumbai-based brokerage firm. "This could impact the IT sector significantly as many companies in this space have a high exposure to the global market."

The stock market has been volatile in recent times, with the Nifty continuing its upward trend despite being influenced by global market fluctuations.

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