Shares of IT companies fell on 9 December. The reason for this could be the monetary policy of the Federal Reserve on December 10. Investors are being cautious about the Fed’s policy. Selling pressure was seen on IT shares. Due to this, Nifty IT index closed down by 1.19 percent. This was the second consecutive day of pressure on IT stocks.
The US central bank Federal Reserve will present its policy on December 10. India will know about the Fed’s decisions late at night. It is estimated that Federal Reserve Chairman Jerome Powell may announce a 0.25 percent reduction in interest rates. The Fed’s reduction in interest rates will have an impact on markets around the world.
Ajit Mishra, SVP (Research) at Religare Broking said, “Sentiment is a bit weak ahead of the Fed’s policy. Investors are expecting the Fed’s policy to be tight. This will impact the emerging markets.” America has a major share in the revenue of Indian IT companies. Therefore, Fed’s policy may have an impact on the shares of big Indian IT companies.
The maximum decline of 4 percent was seen in the shares of Coforge. It fell 4.13 percent to close at Rs 1,870. Shares of TCS, HCL Tech, Wipro and Infosys fell ranging from half a percent to nearly 2 percent.
Siddharth Maurya, Founder and MD of Vibhavangal Anukulakara, said that Indian IT companies have been affected by the reduction in expenses of big global clients. There has also been a decline in the number of deals. Global investors are continuously selling in Indian markets. This has also affected the shares of IT companies.
A decline was also seen in the major indices of Indian markets. Nifty fell 0.47 percent to 25,839. BSE Sensex closed at 84,666 with a weakness of 0.51 percent. This week both the indices have declined by about 1.2 percent. It has fallen about 1.8 percent from its life time high at the beginning of this month.
Experts say that the Federal Reserve may announce a reduction in interest rates on December 10. But, American banks believe that the Federal Reserve will not reduce interest rates much in 2026. The main reason for this is concern about inflation. The dollar gets support when interest rates are high in America. Due to increase in bond yields in America, investors’ interest in emerging markets decreases.