On Wednesday, the Indian stock market went down, but the IT sector showed strong growth. The Sensex dropped by almost 200 points, and Nifty 50 was also trading in the red. But IT stocks like Infosys and Wipro were rising. So, what’s the reason behind this?
📈 Hope of Interest Rate Cut in the US
Recently, the famous brokerage firm Goldman Sachs said that the US Federal Reserve might cut interest rates in September. Earlier, they expected it in December.
Why this change?
- They said that due to low inflation (even after Trump’s trade tariffs), the rate cut might happen sooner.
During a recent event in Portugal, US Fed Chief Jerome Powell said:
- Any decision on rate cuts will be based on economic data.
- But yes, a rate cut may even happen in early July.
🔻 What Does It Mean for Indian IT Companies?
After Powell’s comment, investors started hoping for a rate cut.
This is good news for Indian IT companies because:
- Many Indian IT firms earn major income from US clients.
- If interest rates in the US go down, cash flow improves.
- More cash means more business deals with Indian IT firms.
- This may increase profits of Infosys, Wipro, TCS, and others.
Experts say the Fed may cut rates by 75 to 100 basis points this time, which is a big cut.
✅ In Short:
- Indian market is down, but IT stocks are rising.
- Investors are hopeful due to possible US rate cuts.
- Rate cuts mean better business for Indian IT firms, which rely on US clients.
- So, this news has made Infosys, Wipro, TCS and other IT stocks go up.
