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IT Shares Plunge for Sixth Day: OFSS, Infosys Lead Losses Amid Rate Hike Fears
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Moneycontrol•25-09-2026, 10:36
IT Shares Plunge for Sixth Day: OFSS, Infosys Lead Losses Amid Rate Hike Fears
- •Nifty IT index fell 0.6% on September 25, extending its decline for the sixth consecutive session, as crude prices above $100 a barrel fueled inflationary worries.
- •Higher US interest rates, anticipated due to persistent inflation, could negatively impact demand and economic growth for Indian IT companies heavily exposed to the US market.
- •Infosys and Tata Consultancy Services were significant drags on the Nifty 50, with Infosys down 2% and TCS down 0.5%.
- •Oracle Financial Services Software (OFSS) was the top laggard in the Nifty 200, shedding 5%, partly due to its parent company's issues with a data center developer.
- •Expectations of higher-for-longer US interest rates intensified after Federal Reserve policymakers indicated further hikes might be necessary to curb inflation, with markets pricing in a nearly 69% probability of a US rate hike in October.
Key Questions Answered
The Nifty IT index fell 0.6% as crude prices exceeding $100 a barrel heightened inflationary worries and increased expectations of near-term Federal Reserve rate hikes, which could reduce demand and economic growth in regions like the US.
Infosys and Tata Consultancy Services dropped 2% and 0.5% respectively, serving as the primary drags on the Nifty 50. In the mid-cap space, Oracle Financial Services Software shed 5% to become the top laggard in the Nifty 200 index.
Oracle Financial's parent company closed over 3% lower in the US after reporting that it issued a force majeure notice to a data centre developer in New Mexico due to power-linked delays.
