Infosys, TCS, other IT stocks decline as investors await Fed cues on rate cut path

Infosys, TCS other IT stocks decline as investors await Fed cues on rate cut path.

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The shares of information technology (IT) companies came under selling pressure in Monday’s trade as investors awaited signals from the US Federal Reserve on the pace of interest rate cuts.

Infosys was the biggest drag, slipping 1.32 percent to Rs 1,505.40 on the NSE even after its board approved a share buyback worth Rs 18,000 crore last week.

Infosys will buy 10 crore fully paid-up equity shares of a face value of Rs 5 each, representing up to 2.41 percent of the total paid-up equity share capital, at Rs 1,800 per share.

Tata Consultancy Services and Tech Mahindra also traded lower, declining up to 1.07 percent.

The Nifty IT index was the top sectoral loser, dropping nearly 1 percent. All 10 constituents of the index traded in the red, reversing gains of 0.3 percent made in the previous session.

The Federal Reserve is expected to deliver its first rate cut of the year this week amid signs of a cooling labour market, though political developments are adding uncertainty to the decision.

Since its last cut in December, the Fed has kept rates steady at 4.25–4.50 percent while monitoring the impact of tariffs on inflation.

According to Bloomberg, the markets broadly anticipate a 25-basis-point reduction when the two-day policy meeting concludes on Wednesday.

Investors will closely track Fed Chair Jerome Powell’s comments for guidance on the pace of further rate cuts.

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