Nifty IT index tumbles over 2.5% to hit new 2024 low on fading Fed rate cut expectations
Also Read: Stock market crash today: Why is Indian stock market falling for last three days? Explained with 5 reasons According to Trading Economics data, eight out of thirteen categories recorded increases, indicating that consumers continued to spend at a faster pace than anticipated despite persistent inflationary pressures. Given the strong retail data and elevated inflation print for March, analysts anticipate that the Federal Reserve may delay rate cuts until July or September instead of June. In addition, the mixed results from IT major Tata Consultancy Services have also dented investors' sentiment towards IT stocks.
The IT major on Friday reported a smaller-than-expected fourth-quarter revenue as cautious spending by clients amid macroeconomic uncertainty remains an overhang. Investors are eagerly awaiting results from other industry leaders like Infosys and Wipro later this week to gain insights into the FY25 outlook. Also Read: Why you should invest in Indian stock market despite Iran-Israel tensions, delay in rate cut Analysts had previously forecasted modest revenue growth for large-cap Indian IT companies in the fourth quarter of fiscal year 2024.
This projection reflects ongoing subdued demand trends due to weak discretionary spending and cautious client behavior amid a volatile global macroeconomic landscape. At the time of reporting, all 10 constituents of the index were trading in the red. Coforge experienced the most significant decline, with a drop of 3.3%.
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