Indian markets trade lower amid US rate cut delay concerns
Upstox
1 min read • Updated: February 14, 2024, 11:34 AM
Summary
Around 30 of the Nifty 50 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%.
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%.