Indian IT stocks gained sharply on Thursday after the US Federal Reserve cut interest rates by 25 basis points and signalled 2 more cuts this year. The Nifty IT index rose 1.7%, becoming the top sectoral gainer. LTIMindtree climbed 3.6%, Wipro gained 2.2%, and Infosys rose 2.14%.
By 10:35 AM, Nifty was up 1.03%, while the benchmark Nifty50 advanced only 0.33%.
Despite the rebound, IT stocks have struggled in 2025. The Nifty IT index is still down 15% year-to-date, compared to a 7.5% rise in Nifty50. Big names like Infosys, Wipro, and TCS have all dropped nearly 15% each this year.
Infosys was trading at ₹1,547, up 1.62% on Thursday, but remains well below its 52-week high of ₹2,006.80.
Fed Chair Jerome Powell said the rate cut was a precautionary move, as the labor market is showing weakness. The Fed’s outlook points to two more cuts in 2025, one in 2026, and one in 2027, with no cuts expected in 2028.
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The Fed rate cut has boosted IT stocks in the short term, but long-term challenges remain.
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Published on: Sep 18, 2025, 11:09 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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