Indian IT, Pharma stocks slide as US rate cut prospects fades
Upstox
1 min read • Updated: February 14, 2024, 2:00 PM
Summary
As per experts, persistent high inflation in the US has raised concerns of delay in rate cuts. This is weighing on the market sentiments as well.
Indian markets got off to a shaky start today amid uptick in the US inflation in the January month. Annual retail inflation in the US stood at 3.1%, which was below the 3.4% witnessed in the previous month, but higher than the market forecast of 2.9%.
As per experts, persistent high inflation in the US has raised concerns of delay in rate cuts. This is weighing on the market sentiments as well.
As a result, stocks of export-oriented sectors, including IT and pharma stock took a hit on 14 February as hopes of interest rate cuts in the US dimmed after hotter-than-expected inflation numbers.
NIFTY IT was down 1.98% today dragged down by sell-off in stocks like Infosys (-2.1%), TCS (-1.7%), Tech Mahindra (-2.9%), Coforge (-3.2%). Meanwhile, NIFTY Pharma trades 1.47% lower as major pharma stocks like Sun Pharma (-1.8%), Cipla (-2.8%), Dr Reddy (-2.3%) and Auro Pharma (-3.4%) trades in the red.
Experts believe interest rate cuts in the US could revive the IT spending cycle and could give a boost to India’s export oriented sectors like IT and Pharmaceuticals