NIFTY SLIPS OVER 3% AS US FED EXPECTED TO LOWER RATE CUT PACE
By [Your Name], November 18, 2024, 12:54 PM IST
Mumbai: The Nifty IT index plummeted over 3% in morning trading today due to concerns that the US Federal Reserve is likely to slow its pace of rate cuts in its upcoming policy review.
As trade tickers lit up, investors took to their keyboards to initiate sell orders, further fueling the decline. The top decliners in today's Nifty IT list included:
- Tech Mahindra: Down 5.6%
- Tata Consultancy Services (TCS): Down 4.2%
- Wipro: Down 3.9%
The US Federal Reserve is anticipated to maintain low interest rates and signal a decrease in the pace of rate cuts at its November monetary policy review, sparking concerns over the global economic outlook.
"These lower-rate outlook projections may weigh on stocks in the IT sector, given their high exposure to interest rate-sensitive borrowers," said [Name], an analyst with Fintech Circle. "The Nifty IT is already under pressure due to ongoing rate cut expectations from various central banks."
In a positive note, investors were seen eyeing small-cap exporters who have been benefiting from dollar recovery and favorable trade winds.
"Though the US Fed decision may overshadow short-term trading," noted [Name], a portfolio manager with ABC Investment, "the Indian rupee's recovery against the dollar is sure to provide breathing room for companies that export goods."
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