Indian IT stocks came under heavy selling pressure on December 9 as investors turned increasingly cautious ahead of the US Federal Reserve\u2019s FOMC meeting. Despite expectations of a possible rate cut, market sentiment remained weak, pulling the Nifty IT index down more than 1.2% to 38,115 by 11:50 am. This marked the sector’s second consecutive day of losses.<\/p>\n
The decline reflects both global macro uncertainty and persistent concerns about slowing technology spending by international clients, affecting the revenue visibility of Indian IT service providers.<\/p>\n
The US Federal Reserve began its two-day Federal Open Market Committee (FOMC) meeting on December 9, with the policy outcome scheduled for December 10. Analysts expect the Fed to announce a 25-basis-point rate cut, but with a \u201chawkish\u201d stance, implying limited further cuts in the near term.<\/p>\n
The caution stems not from the expected cut itself, but from the possibility that the Fed may signal a higher threshold for future easing, which could tighten liquidity conditions globally and impact capital flows into emerging markets like India.<\/p>\n
Ajit Mishra, SVP \u2013 Research at Religare Broking, noted that investor sentiment weakened ahead of the Fed meeting, primarily due to fears of a tighter global monetary stance. He added that markets are concerned about the spillover impact such a stance could have on emerging markets, including India.<\/p>\n
This uncertainty pushed traders to trim exposure to sensitive sectors such as IT, which derive a significant share of their revenue from the US.<\/p>\n
The weakness in frontline IT stocks dragged the broader Nifty IT index deeper into the red. By late morning, the index had fallen more than 1.2%, sliding to 38,115.<\/p>\n
This decline extends the selling pressure seen earlier, making it the second straight session where IT stocks have weighed heavily on overall market sentiment.<\/p>\n
The drop also reflects the sector\u2019s broader challenges, including slow deal conversions, reduced discretionary spending, and continued foreign investor pessimism.<\/p>\n
Also Read:<\/strong> DGCA Cuts IndiGo\u2019s Flight Schedule by 5% After Major Operational Crisis; Revised Plan Due by Dec 10<\/a><\/p>\n The IT sector, which depends heavily on the US and European markets, has been struggling for several quarters.<\/p>\n According to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara, the industry has suffered due to:<\/p>\n Reduced spending by international clients on non-essential services<\/p>\n<\/li>\n Slim deal pipelines<\/p>\n<\/li>\n Foreign investors are exiting amid macroeconomic uncertainty<\/p>\n<\/li>\n<\/ul>\n Maurya added that although automation and artificial intelligence are reshaping the IT industry, there remains a level of doubt among investors until clients confirm fresh outsourcing deals.<\/p>\n However, he also noted that market valuations have already priced in much of the negativity. Dividend yields are currently attractive, which could make the sector appealing for long-term, contrarian investors who can handle volatility over the next 12\u201318 months.<\/p>\n Among Nifty IT stocks, Coforge emerged as the biggest loser. Shares of the company fell nearly 4%, trading at \u20b91,873.90 apiece. The stock\u2019s sharp decline contributed significantly to the sectoral index\u2019s weakness.<\/p>\n Other major IT stocks also ended lower:<\/p>\n Tata Consultancy Services<\/a> (TCS): Down over 1%<\/p>\n<\/li>\n HCL Technologies:<\/a> Down over 1%<\/p>\n<\/li>\n Wipro<\/a>: Down over 1%<\/p>\n<\/li>\n Infosys<\/a>: Down over 1%<\/p>\n<\/li>\n Tech Mahindra<\/a>: Down nearly 1%<\/p>\n<\/li>\n LTIMindtree<\/a>: Down nearly 1%<\/p>\n<\/li>\n Persistent Systems<\/a>: Down nearly 1%<\/p>\n<\/li>\n<\/ul>\n With most IT heavyweights in the red, the sector turned out to be the top sectoral loser for the day.<\/p>\n While a rate cut is generally supportive for risk assets, the nervousness in markets stems from expectations of a hawkish communication from the Fed. Analysts believe:<\/p>\n The Fed\u2019s language<\/p>\n<\/li>\n The median forecast of policymakers<\/p>\n<\/li>\n Chair Jerome Powell\u2019s press conference<\/p>\n<\/li>\n<\/ul>\n \u2026could all indicate limited room for additional cuts in the near term.<\/p>\n Such an outcome could lead to:<\/p>\n Stronger US dollar<\/p>\n<\/li>\n Outflows from emerging markets<\/p>\n<\/li>\n Volatile equity markets globally<\/p>\n<\/li>\n<\/ul>\n Given that IT companies earn a substantial portion of revenues from the US, any hint of prolonged global tightening impacts their earnings outlook and stock sentiment.<\/p>\n Despite the near-term pressure, some analysts believe that the sector could see value buying if valuations turn more attractive.<\/p>\n Maurya said that while automation and AI continue to drive long-term transformation, the sector will likely remain under pressure until there is clarity on new outsourcing deals and client spending stabilizes.<\/p>\n However, with most negatives already priced in, the sector could present opportunities for \u201clong-term, contrarian investors\u201d willing to withstand volatility for 12\u201318 months.<\/p>\n Click here to explore:<\/strong> Indian IT stocks came under heavy selling pressure on December 9 as investors turned increasingly cautious ahead of the US Federal Reserve\u2019s FOMC meeting. Despite expectations of a possible rate cut, market sentiment remained weak, pulling the Nifty IT index down more than 1.2% to 38,115 by 11:50 am. This marked the sector’s second consecutive […]<\/p>\n","protected":false},"author":7,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1384],"class_list":{"0":"post-18805","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1384,"user_id":7,"is_guest":0,"slug":"jitesh-kanwariya","display_name":"Jitesh Kanwariya","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=18805"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18805\/revisions"}],"predecessor-version":[{"id":18806,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18805\/revisions\/18806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/18731"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=18805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=18805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=18805"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=18805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why Global Factors Are Hurting Indian IT<\/h2>\n
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Top IT Losers: Coforge Drops Nearly 4%<\/h2>\n
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Why Investors Are Nervous Despite a Possible Rate Cut<\/h2>\n
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Sector Outlook Remains Challenged but Potentially Attractive for Long-Term Investors<\/h3>\n
\nGift Nifty<\/a>
\nFII DII Data<\/a>
\nIPO<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"