Indian IT stocks rise as U.S. PCE data fuels September rate cut hopes

Mphasis

01/09/2025 06:41

** IT sub-index .NIFTYIT rises 1.4%; Nity 50 .NSEI up 0.43%

** U.S. Personal Consumption Expenditures (PCE) rose in line with estimates, keeping alive the expectations of a rate cut in September,

** Lower U.S. rates can help revive tech spending in the world's largest economy, which is a key market for Indian IT firms

** All 10 Sub-index constituents trading higher, led by Mphasis' MBFL.NS and Infosys INFY.NS roughly 2% climb

** CLSA expects 75 bps rate cut in U. S. over the next 1-1.5 years which could lead to a 10% to 15% increase in valuation multiples for Indian IT firms

** Remains positive on the sector on attractive valuations

** YTD, IT index down 17.7%, worst performer among major sectors, while Nifty 50 is up 3.8%

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com;))