IT Stocks Leads Market Surge After US Fed Meeting

The US Federal meeting which was concluded yesterday has served as a stimulation for the appraisement of IT Stocks in the Capital market exchange. According to experts, the further three rate cuts in 2024 will be touted to gain momentum in the stock market.

IT Stocks Leads Market Surge After US Fed Meeting

The IT sector has been trending in a bull rise after the steady consequence rates of the US monetary meeting. Indian IT major TCS's share price has surged to the tune of 2 per cent and came close to its 52-week high of Rs. 3698.40 a piece on NSE, Infosys shares went up around 3 per cent, HCL Tech share price shot up around 3 per cent and touched a new 52- week high of Rs.1,419.25 per share levels. Cyient shares shot up to the tune of 4.50 percent whereas KPIT Technologies' share price went up around 1.50 percent.

The observation is snoozing to hint at either rate cuts or remaining unchanged by the US stock market. This unusual stance will actuate RBI to go for a rate cut in the upcoming MPC meeting. Hence, growth stocks are expected to come into the radar of stock market investors. This is surely going to fuel growth stocks and hence IT shares are expected to pick up momentum in the short to medium term.

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The different perceptions of rate cuts are estimulated according to the status of different markets, usually a hike in the interest rates in the US impacts both the Indian Markets and the economy negatively. The market tends to come down, foreign investors pull out, forex starts to deplete, the economy is at risk of mounting inflation, and the rupee falls against the dollar. As a general rule of thumb, when the Federal Reserve cuts interest rates, it causes the stock market to go up; similarly, when it raises the interest rates, it causes the stock market to go down. 


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The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 21,222 level as compared to the Nifty futures' previous close of 21,035. The 30-share Sensex ended 33.57 points, or 0.05 per cent higher at 69,584.60, while the NSE Nifty 50 closed at 20,926.35 up 19.95 points or 0.1 per cent. The market has recovered from another key support of 10-day EMA around 20,720 levels.

 There is a higher possibility of Nifty moving again into all-time highs of 21,040+ levels in the near term.

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