Indian markets trade lower amid US rate cut delay concerns

Indian shares are trading in the red today, weighed down by weakness in information technology (IT) and financials stocks. The hotter-than-expected US inflation numbers have raised concerns that interest rate cuts could be delayed. This is weighing on sentiment, said experts.

The NSE NIFTY 50 index was down 0.49% at 21,636, while the S&P BSE Sensex was down 0.54% to 71,169, as of 11:15 a.m IST.

Around 30 of the Nifty50 stocks are declining. The broader markets are witnessing a mixed performance. While small-caps are up 0.8%, while mid-caps are down 0.1%.

Meanwhile, shares of the domestic IT companies are down around 2%. This comes against the backdrop of retail inflation slowing less-than-expected in the US. Experts state that the Fed won’t be in a hurry to cut rates amid a stubborn inflationary environment.

Note that higher rates could lead to an economic slowdown, which isn’t beneficial for the Indian tech companies. This is because the domestic tech companies garner a significant portion of their revenue from the U.S.

Infosys, LTIMindtree and Tech Mahindra are down in the range of 1% to 3%.