India's IT stocks decline on rising odds of US rate hike

Infosys

07/09/2026 06:53

** India's information technology index .NIFTYIT falls as much as 2.35% to a five-week low of 29,973.15 levels
** All 10 constituents in the IT index log losses
** Infosys INFY.NS, LTM LTM.NS fall 3.3% and 3% respectively, top percentage losers in the IT index
** Drop after stronger-than-expected U.S. jobs growth data boosts bets on a September rate hike by the U.S. Federal Reserve
** Higher U.S. rates could curb client spending, weighing on Indian IT firms that generate a significant share of their revenue from the United States
** U.S. inflation data due later this week will be closely watched ahead of the Fed policy meeting on September 15-16, traders say, adding that hotter-than-expected inflation could set the stage for a rate hike
** In contrast to domestic IT shares, tech stocks elsewhere in Asia rise on the day, led by chip-related firms
** Lack of pure-play chip and artificial intelligence-linked themes in the Indian market, alongside muted client spending and earnings, has weighed on Indian IT .NIFTYIT, which is down 21% year-to-date, compared to 9% fall in Nifty 50 .NSEI



 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))