IT Stocks Slip Ahead of US Fed Meet: Coforge, TCS, Infosys, Wipro, Others See Marginal Decline

Market Performance

Indian IT stocks witnessed a mild pullback on June 18, as the sector snapped its three-day winning streak. The Nifty IT index declined by over 0.5%, slipping into negative territory even as broader market indices—Sensex and Nifty—remained in the green.

The index was seen hovering around the 39,138 mark in morning trade, signaling a pause in the recent upward momentum for IT companies.

Main News

Investor sentiment appeared cautious ahead of the US Federal Reserve meeting, with many opting for profit booking after a strong rally in IT stocks.

Notably, the Nifty IT index had posted gains in nine out of the last ten sessions, driven by optimism surrounding a potential US interest rate cut. Expectations were built on the back of softening inflation and weak job data from the US, which could have a direct impact on IT spending trends.

Company-wise Share Price Movement

Here's a quick look at how major IT stocks performed during the session:

• Coforge: Fell over 1.5%, trading at ₹1,812 per share
• Tata Consultancy Services (TCS): Dropped by around 1%
• Persistent Systems: Also saw a decline of nearly 1%
• Infosys: Dipped by approximately 0.5%
• Mphasis: Fell over 0.5%
• HCL Technologies: Traded in the red with a marginal dip
• Wipro: Showed slight losses
• Tech Mahindra: Slipped marginally
• LTI Mindtree: Also recorded minor losses

The overall downtrend suggests investors are reacting with caution ahead of macroeconomic triggers from the US.

Company Details

India's top IT companies, such as TCS, Infosys, and HCL Tech, derive a significant share of their revenues from the US market. Therefore, any shift in US economic policy, especially a rate cut, can have a direct impact on client budgets and demand for digital services.

While the recent rally in IT stocks reflected optimism, today's dip suggests a wait-and-see sentiment as global cues become increasingly critical.

Summary of the Article

• Nifty IT index slipped over 0.5% to 39,138, breaking a 3-day winning streak
• Broader market indices like Sensex and Nifty remained positive
• Stocks like Coforge, TCS, Persistent Systems, and Infosys saw declines ranging from 0.5% to 1.5%
• Caution prevails ahead of the US Federal Reserve meeting, impacting investor confidence in IT shares
• The majority of the top Indian IT stocks, including Wipro, Mphasis, and LTI Mindtree, traded marginally lower