{"id":5506,"date":"2025-03-19T14:15:40","date_gmt":"2025-03-19T08:45:40","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5506"},"modified":"2025-03-19T14:15:40","modified_gmt":"2025-03-19T08:45:40","slug":"nifty-it-falls-2-amid-recession-fears-fed-policy-uncertainty","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/nifty-it-falls-2-amid-recession-fears-fed-policy-uncertainty\/","title":{"rendered":"Nifty IT Falls 2% Amid Recession Fears &#038; Fed Policy Uncertainty"},"content":{"rendered":"<h2 data-start=\"98\" data-end=\"173\">Indian IT Stocks Slide Amid US Growth Concerns and Dollar Weakness<\/h2>\n<p data-start=\"175\" data-end=\"427\">Indian IT stocks witnessed a sharp selloff on March 19, with the Nifty IT index plunging nearly 2% in afternoon trade, reflecting concerns over slowing US economic growth, a weakening dollar, and upcoming Federal Reserve policy decisions.<\/p>\n<h3 data-start=\"429\" data-end=\"454\">Highlights:<\/h3>\n<ul data-start=\"455\" data-end=\"826\">\n<li data-start=\"455\" data-end=\"511\">Nifty IT index declines 2% as tech stocks tumble<\/li>\n<li data-start=\"512\" data-end=\"624\">TCS, Tech Mahindra, HCL Tech, Infosys, Wipro, Coforge, and Persistent Systems among the worst performers<\/li>\n<li data-start=\"625\" data-end=\"695\">US recession fears and global market weakness impact sentiment<\/li>\n<li data-start=\"696\" data-end=\"770\">Nasdaq plunges 1.7% overnight, further pressuring IT sector stocks<\/li>\n<li data-start=\"771\" data-end=\"826\">Nifty IT index down over 17% year-to-date (YTD)<\/li>\n<\/ul>\n<h3 data-start=\"828\" data-end=\"891\">Tech Stocks Under Pressure as US Recession Risks Grow<\/h3>\n<p data-start=\"893\" data-end=\"1295\">At 12:30 PM, shares of Tata Consultancy Services (TCS) fell 2.20%, leading the decline, while Tech Mahindra, HCL Tech, Infosys, Wipro, Coforge, and Persistent Systems each lost close to 2%. The drop comes as investors brace for the Federal Reserve\u2019s monetary policy decision, which could have significant implications for liquidity, interest rates, and global economic growth.<\/p>\n<p data-start=\"1297\" data-end=\"1497\">The Federal Reserve\u2019s ongoing two-day policy meeting has added to market uncertainty, with investors closely watching for signals on potential rate cuts or prolonged monetary tightening.<\/p>\n<h3 data-start=\"1499\" data-end=\"1558\">Global Market Weakness Amplifies Selling Pressure<\/h3>\n<p data-start=\"1560\" data-end=\"1726\">Indian IT stocks mirrored the overnight selloff on Wall Street, where the Nasdaq tumbled 1.7%, driven by recession fears and tightening monetary conditions.<\/p>\n<p data-start=\"1728\" data-end=\"1922\">Adding to concerns, the US dollar has weakened, further pressuring Indian IT firms\u2019 earnings outlook since a large portion of their revenue comes from exports to the United States.<\/p>\n<p data-start=\"1924\" data-end=\"2096\">Meanwhile, global investors have sought refuge in safe-haven assets, with gold prices surging to record highs, reflecting a cautious sentiment across markets.<\/p>\n<h3 data-start=\"2098\" data-end=\"2186\">Jefferies India: IT Sector Valuations Still Elevated Despite Market Correction<\/h3>\n<p data-start=\"2188\" data-end=\"2450\">Last week, Mahesh Nandurkar, MD &amp; Head of Research at Jefferies India, cautioned about the fragile outlook for Indian IT stocks, citing that while valuations have come down from historic highs, they still remain 15-18% above long-term averages.<\/p>\n<p data-start=\"2452\" data-end=\"2716\"><em data-start=\"2452\" data-end=\"2659\">&#8220;Investors were willing to pay a premium for IT stocks when the sector enjoyed strong tailwinds\u2014robust US growth and a favorable dollar\u2014but with these factors fading, a 25% premium is no longer justified,&#8221;<\/em> Nandurkar stated in a conversation with CNBC-TV18.<\/p>\n<p data-start=\"2718\" data-end=\"2893\">Given ongoing global economic uncertainties, Jefferies sees financial stocks as a more attractive investment option compared to IT stocks in the current environment.<\/p>\n<h3 data-start=\"2895\" data-end=\"2963\">Nifty IT Down, Broader Indices Hold Gains<\/h3>\n<p data-start=\"2965\" data-end=\"3194\">At 12:30 PM, the Nifty IT index was trading at 35,940, down 1.85% from the previous close. The index has now fallen over 17% since the beginning of the year, significantly underperforming broader market indices.<\/p>\n<p data-start=\"3196\" data-end=\"3333\">Meanwhile, the Sensex was up 156.41 points or 0.21% at 75,457.67, while the Nifty 50 gained 69.45 points or 0.30% to 22,903.75.<\/p>\n<p data-start=\"3335\" data-end=\"3536\" data-is-last-node=\"\" data-is-only-node=\"\">Despite the downturn in IT, market breadth remained positive, with 2,734 stocks advancing, 780 declining, and 115 unchanged, suggesting continued strength in select sectors outside of tech.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian IT Stocks Slide Amid US Growth Concerns and Dollar Weakness Indian IT stocks witnessed a sharp selloff on March 19, with the Nifty IT index plunging nearly 2% in afternoon trade, reflecting concerns over slowing US economic growth, a weakening dollar, and upcoming Federal Reserve policy decisions. Highlights: Nifty IT index declines 2% as [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5506","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":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5506","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5506"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5506\/revisions"}],"predecessor-version":[{"id":5509,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5506\/revisions\/5509"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5507"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5506"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}