Indian IT stocks slip as US Fed sees fewer rate cuts in 2025

L&T Technology Services

19/12/2024 03:58

** IT stocks  .NIFTYIT  drop 2%, while benchmark Nifty 50
 .NSEI  sheds 1%
    ** Sub-index's all 10 stocks in red; Infosys  INFY.NS  and
HCLTech  HCLT.NS  down ~2% each, while Wipro  WIPR.NS  falls 3%
    ** U.S. Fed delivered 25 bps rate cut overnight, as
expected, but forecast only two quarter-pct-point cuts in 2025,
half a pct point lower than what officials anticipated in
September
    ** Odds of a January rate cut fell to 6% on Thursday from
16% ahead of Fed decision - CME FedWatch tool
    ** Indian IT firms derive a major chunk of their rev from
U.S.
    ** WIPR and INFY top two pct losers on NSEI
    ** Six of 10 NIFTYIT stocks rated "hold" on avg; three,
including TCS and INFY, rated "buy" - LSEG
    ** L&T Tech  LTEH.NS  only stock rated "sell"

 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))