IT shares snap three-day gaining streak ahead of US Fed meet; Coforge, TCS, others fall up to 1.5%

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26 Aug, 2025 12:21

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The shares of several IT companies dropped on June 18, pushing the Nifty IT index down over half a percent to hover in the red and snap a three-day gaining streak. This comes as investors may have resorted to profit booking at elevated levels, while awaiting a possible rate cut by the US Federal Reserve.

The Nifty IT index stood at around 39,138 in the morning, bucking the overall market trend with benchmark indices Sensex and Nifty being in the green.

Notably, IT stocks had recorded significant gains recently. The Nifty IT index closed in the green in nine out of the last 10 sessions, dodging the overall volatility in the market. This came on the back of expectations of US Federal Reserve announcing a rate cut today after its meeting. Softer inflation and weakening jobs data have boosted the rate cut hopes.

Indian IT companies derive a major portion of their revenues from US market. A rate cut by the American central bank will likely boost US discretionary demand, which in turn may benefit the IT firms.

Coforge shares dropped over 1.5 percent to trade at Rs 1,812 apiece, Tata Consultancy Services (TCS) and Persistent Systems shares dropped around 1 percent each. Infosys and Mphasis shares meanwhile fell over around 0.5 percent each.

HCL Tech, Wipro, Tech Mahindra and LTI Mindtree shares were trading in the red with marginal losses.

"Going forward, in the absence of any major domestic triggers, it will be crucial to stay vigilant for global developments, as Fed policy is around the corner, and key developments could act as a catalyst in setting an intermediate tone for equity markets. Furthermore, it is advisable to exercise vigilance and implement effective risk management strategies given the current market landscape," said by Sameet Chavan, Head Research, Technical and Derivative at Angel One, about the overall market.

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