1 day ago
Indian IT Stocks Fall on US Jobs Data, Rate Concerns
Indian technology stocks fell on September 7.
This happened after strong jobs data from the United States.
The data made investors think the Federal Reserve may raise interest rates again.
Higher rates can make borrowing more expensive.
They can also make company shares, especially technology shares, less attractive.
Indian IT companies depend heavily on business from the United States.
Investors worried that American companies might spend less on technology services.
They are now watching upcoming United States inflation data for clues about what the Federal Reserve may do next.
The Nifty IT index fell 1.93% to 30,104 in early trading on September 7.
Infosys dropped 2.9%, while Tech Mahindra fell 1.9%; TCS, HCL Technologies and Wipro also declined.
Midcap technology stocks including Mphasis, Persistent Systems and L&T Technology Services fell between 1.4% and 1.9%.
Strong United States employment data increased expectations of Federal Reserve rate hikes in September and October.
Investors are awaiting United States inflation data for further signals about interest-rate policy.
- Who
- Indian technology companies and investors, with the Federal Reserve’s policy outlook influencing sentiment.
- What
- Indian IT stocks declined, led by a 2.9% fall in Infosys, as expectations of further United States interest-rate hikes increased.
- Where
- Indian stock markets, amid reactions to United States economic data and global markets.
- When
- September 7; investors were also awaiting United States inflation data due later that week.
- Why
- Strong United States employment data raised expectations of additional Federal Reserve rate hikes, higher bond yields and potentially weaker technology spending.
Key facts
- Nifty IT performance
- Down 1.93% at 30,104 around 10:36 a.m.
- Largest major-company decline
- Infosys fell 2.9% to ₹1,097.
- Tech Mahindra
- Fell 1.9% to ₹1,565.
- Midcap technology stocks
- Mphasis, Persistent Systems and L&T Technology Services declined 1.4% to 1.9%.
- Broader market
- The Nifty 50 slipped 0.4%, while the Sensex declined 300 points around the same time.
- Upcoming indicator
- United States inflation data was expected later that week.
Sources
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