18 Nov , 2024 By : Debdeep Gupta
Today's correction follows a two-week rally in IT stocks, driven by optimism over potential favorable policies from U.S. President-elect Donald Trump's administration.
The Nifty IT index tumbled nearly 3 percent on November 18 after US Federal Reserve Chair Jerome Powell said there was no need to rush to lower interest rates due to ongoing economic growth, a solid job market, and inflation above its 2 percent target.
By 10:10 AM, the Nifty IT index was down 2.7 percent, with all 10 constituents declining 2–4 percent. The tech index has surged 16 percent year-to-date, outperforming the Nifty 50's 8 percent gain during the same period.
IT companies, heavily reliant on U.S. revenue, face challenges as higher U.S. interest rates make emerging markets like India less appealing to foreign investors.
The correction follows a two-week rally in IT stocks, driven by optimism over potential favorable policies from U.S. President-elect Donald Trump's administration.
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