IT Stocks Fall as Fed Holds Rates, Inflation Worries Grow: TCS, Wipro and More Slide Up to 3%

Indian IT stocks saw selling pressure after the Federal Reserve kept interest rates unchanged for the second time. Fed Chair Jerome Powell gave a cautious (hawkish) outlook, saying rate cuts will depend on inflation improving.

This led to weak sentiment in the IT sector, with the Nifty IT index falling around 2.4%. Most IT stocks declined between 2% and 3%.

Major IT Stocks Under Pressure

Top IT companies like TCS, Wipro, Infosys, and HCLTech dropped over 2.5%.

Other firms such as Coforge, Mphasis, Persistent Systems, Tech Mahindra, and Oracle Financial Services also traded lower.

Impact of US Market and Inflation

Indian IT companies earn a large share of their revenue from the US. Because of this, they are highly affected by US interest rates and inflation trends.

If inflation stays high:

• Consumers may reduce spending
• Companies may cut IT budgets
• Demand for IT services could slow

This can hurt both revenue growth and profit margins of IT firms.

Market Sentiment and Other Factors

Broader market weakness also affected IT stocks. Ongoing geopolitical tensions in West Asia have made investors cautious.

Additionally, IT stocks have already fallen sharply in 2026, with the Nifty IT index down over 20% so far. 

Read More: HDFC Bank Share Price in Focus; Announces Part Time Chairman Resignation and Interim Appointment!

Conclusion

IT stocks are under pressure due to global uncertainties, especially US interest rates and inflation. Since the sector depends heavily on the US market, any delay in rate cuts or rise in inflation can impact growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.