The Nifty IT index fell nearly 3% on 18th November after U.S. Federal Reserve Chair Jerome Powell stated there was no urgency to lower interest rates, citing economic growth, a strong job market, and inflation above the 2% target.

The index fell 2.7% as all 10 constituents declined 2–4%. Despite this, the index has gained 16% year-to-date, outperforming the Nifty 50’s 8% rise in the same period.

Large IT firms like Tech Mahindra, TCS, Infosys, and Wipro fell 2–4%, while midcap IT stocks such as Coforge, Persistent Systems, L&T Technology Services, and Mphasis registered 1–2% losses.

Federal Reserve Chair Jerome Powell, speaking on 14th November in Dallas, stated that there was no rush to lower interest rates. This led to a sharp sell-off in tech stocks, with the NASDAQ Composite dropping over 2%, its biggest single-day fall in two weeks.

Indian IT firms, which heavily depend on U.S. revenue, are under pressure as higher U.S. interest rates reduce the appeal of emerging markets like India for foreign investors.

The correction comes after a two-week rally in IT stocks, fueled by optimism about potential favourable policies from the U.S. President-elect Donald Trump’s administration.

In addition to concerns over rate cuts, FII selling and possible U.S. government expenditure cuts are contributing to market uncertainty.

At 11:47 AM, TCS traded 3% lower at Rs 4,021.40, and Wipro traded 3.56% lower at Rs 546.55 on NSE.

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