US Fed Anticipated to Ease Pace of Rate Cuts, Nifty IT Index Slips 3%

Mumbai, November 18, 2024: The Indian stock market witnessed a downtrend in the afternoon session, with major indices, including the Nifty IT index, experiencing significant losses due to concerns over the US Federal Reserve's upcoming interest rate cut plan.

According to market analysts, the Fed is anticipated to adopt a more cautious approach in reducing its key interest rates at its upcoming monetary policy review. This has led to a surge in dollar prices, causing the Indian Rupee to depreciate against its American counterpart.

The Nifty IT index, which represents stocks from the information technology sector, plummeted 2.92% during morning trade to touch an all-time low of 23,444 points. The benchmark indices at the bourses – NSE's Nifty50 and BSE Sensex – also experienced significant losses, with gains of 40-60 points.

This decline in the Nifty IT index was attributed to investors' concerns over a moderation in growth amidst rising inflation levels and interest rate hike outlook by various central banks.

"Investors expect the coming interest rate cuts from the US Fed, leading them to invest in safe-haven assets such as gold," said Ravi Tejuja, an investor who had put his money on NTPC.