Nifty IT Index Takes a Beating as US Fed's Rate Cut Pace Appears Set to Slow Down

Mumbai, November 18, 2024: The markets are experiencing a sense of unease with the Nifty IT index plummeting by over 3% following fresh indications that the US Federal Reserve is keen on reducing the rate-cut pace.

The recent trends on Wall Street and hints from American officials have led investors to believe that the Fed is likely to shift its strategy and slow down the steep downward cut in rates of interest. This shift has triggered massive selling pressure across various markets including stocks, bonds and currencies.

As a result, technology stocks, which were among the top performers until now, are witnessing heavy losses. The NIFTY100 index had closed at 17,439 points, down by over 3%, with IT stocks bearing the brunt of the damage.

Market experts believe that this sudden move will be based on a concern that the current rapid decline of interest rates is fueling asset bubbles and could pose risks to economic growth. They argue that slowing down rate cuts would ensure sustainable growth and manage potential inflationary pressures.

With concerns about rising inflation and potential impact of rising interest rates weighing heavily on investors' minds, it's now time for us to bring you the latest updates from the markets and provide our analysis of the trends unfolding before our eyes.