Stories
Nifty IT Soars 2% as US Fed Rate Hike Bets Ease; TCS, Tech Mahindra, HCL Tech Lead Rally
- •Indian IT stocks surged over 2% as expectations of a near-term US Federal Reserve rate hike moderated, making Nifty IT a top-performing sectoral index.
- •TCS, Tech Mahindra, and HCL Technologies led the gains, with TCS shares rising 3.2% to Rs 2,097.80, topping the Nifty gainers' list.
- •The rally extended beyond large-cap IT, with companies like Coforge, Hexaware Technologies, and Oracle Financial Services Software also seeing significant advances in the BSE Midcap index.
- •Moderating US Fed rate hike odds, now at 44% from nearly 70% according to the CME FedWatch Tool, fueled the IT sector's strong performance.
- •Softer US activity data and cautious signals from policymakers, including New York Fed President John Williams, contributed to the reduced urgency for immediate rate increases.
Key Questions Answered
Indian IT stocks rallied sharply as expectations of a near-term US Federal Reserve rate hike moderated. The probability of a rate increase fell to 44 percent from nearly 70 percent amid softer US economic data and cautious signals from policymakers regarding an immediate follow-up move.
TCS shares rose 3.2 percent to become the top Nifty gainer, followed by Tech Mahindra which gained 2.6 percent, and HCL Technologies which increased by 2.2 percent. These three IT majors occupied the top positions on the Nifty gainers' list.
US consumer confidence dropped to its lowest level in over 12 years in September, while New York Fed President John Williams indicated there was no urgency following the September rate increase. Additionally, lower crude oil prices helped ease broader inflation concerns.
