NIFTY SLIPS OVER 3% AS US FED LIKELY TO LOWER PACE OF RATE CUTS

Mumbai, November 18, 2024: The Nifty IT index continued to plummet by over 3% in morning trade on Monday, as investors remained cautious amid expectations that the US Federal Reserve may slow down its pace of rate cuts.

The markets remain glued to the US Federal Reserve's upcoming monetary policy decision, with many expecting a downgrade from their previous projection of two more rate hikes this year. The Wall Street Journal had reported earlier in the day that the Fed is likely to lower its inflation forecast, leaving room for a potential cut in rates in December.

As news of the expected rate cut trickled down to Dalal Street, investors began to reassess their bets on various stocks and sectors. The Nifty IT index, which had been riding high on hopes of interest rate cuts benefiting tech sector growth, took a decisive hit.

Brokerages across the country are advising caution for the day, with some even forecasting a market downturn in the coming days if the Fed surprises markets by maintaining its rate hike stance.

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