IT Stocks in Focus: US Fed Rate cut sparks IT rally, Nifty IT hits 37,000; Infosys, Wipro gain

IT Stocks Today: Shares of Indian IT companies rallied sharply on Thursday, with the Nifty IT index topping the sectoral gainers’ list after the US Federal Reserve cut its benchmark interest rate for the first time since December 2024. The Nifty IT index rose 1.5 per cent in morning trade to 37,006, extending gains for the third consecutive session.

US Fed Trims Rates by 25 bps

On September 17, the US Federal Reserve lowered its key policy rate by 25 basis points to 4–4.25 per cent, matching analyst expectations. This is the first rate cut since President Donald Trump began his second term.

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Policymakers also hinted at two more quarter-point cuts this year — 50 bps in total — plus one cut in 2026 and another in 2027. One official projected as much as 125 bps of easing by December.

Fed Chair Jerome Powell described the move as a “risk management cut,” citing softening labour market conditions and rising downside risks to employment.

Why IT Stocks Are Rallying

Rate cuts in the US are expected to boost discretionary spending by American businesses, a key driver for Indian IT firms that earn a large share of their revenues from North America.

Among individual stocks, LTIMindtree climbed nearly 3 per cent to Rs 5,573. Infosys, Wipro and Mphasis gained around 2 per cent each, while Persistent Systems, HCL Tech, Coforge and Tech Mahindra rose more than 1 per cent apiece. Tata Consultancy Services (TCS) was up nearly 1 per cent.