India's IT stocks fall as Fed rate hike signals fuel demand concerns

LTM

18/06/2026 05:35

** India's Nifty IT index .NIFTYIT falls 1.7%, with all constituents in the red; on track to snap three sessions of gains
** Federal Reserve signals potential rate hike later this year, with traders now expecting higher rates as soon as September
** Higher U.S. rates could dampen discretionary spending, hurting sentiment towards Indian IT exporters that get a significant part of their revenue from the U.S. 
        ** Persistent Systems PERS.NS down 2.01% at 4944 rupees, Mphasis MBFL.NS loses 0.53% to 2327.9 rupees, LTM LTIM.NS sheds 1.3% to 3944.5 rupees, Infosys INFY.NS slips 2.5% to 1128.7 rupees and TCS TCS.NS falls 1.52% to 2189.6 rupees
** YTD, NIFTYIT down 25.3%, pressured by worries including AI-led disruption; benchmark Nifty 50 down 7.8%

 (Reporting by Surbhi Misra in Bengaluru)
 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))