NIFTY PLUMMETS OVER 3% AS EXPECTATION OF EASED US FED POLICY DRIVES MARKET VOLATILITY

The Stock Market Watched a nosedive today as the Nifty IT index fell by over 3% in morning trade, amidst expectations of a slowdown in the rate-cuts by the US Federal Reserve. The market is closely tracking the decision made on November 6 by the US Fed to slow down the pace of interest rate cuts.

This news has sparked fears among traders that the tightening of monetary policy may have an impact on emerging markets like India, who heavily rely on their IT sector for growth. As a result, stocks in the IT sector took a hit with some heavy weightage components witnessing significant downsides.

Among major market movers were Infosys Ltd rising 0.5% and HCL Technologies slipping by 4%. Other notable drags on benchmark Nifty at day's close included Tech Mahindra at 4%, Wipro at 3.35%, Cognizant Technology Solutions Corp at 6.38 % (up), and Tata Consultancy Services Co fell down to 1.28 percent.

Shares of IT bellwethers saw a sharp decline, making it clear that market sentiment remains risk-averse ahead of US Fed's key decision next week.