Indian IT Stocks Tumble Amid Renewed Fed Rate Hike Worries
Indian IT stocks took a hit on Monday, with shares of Infosys and HCLTech falling up to 3% due to renewed worries about a Federal Reserve interest rate hike in September.
The Nifty IT index dropped over 2% to trade at 30,082, leading losses among all major sectoral indices. Other IT stocks such as Tech Mahindra, OFSS, Coforge, Wipro, Persistent Systems, and TCS also fell by 1-2%.
The US job growth accelerated sharply in August, with nonfarm payrolls increasing by 162,000, exceeding economists' expectations of a gain of 56,000. This boosted hopes for a rate hike by the Federal Reserve in September, with traders now pricing in approximately 57% chance of a rate increase this month.
Higher US rates could curb client spending, weighing on Indian IT firms that generate a significant share of their revenue from the United States.