IT stocks opened on a strong note Monday, mirroring gains in other Asian markets after U.S. Federal Reserve Chair Jerome Powell indicated that interest rate cuts are imminent. The GIFT Nifty was trading at 24,902 as of 7:57 a.m. IST, signaling that the NSE Nifty 50 would open above its Friday close of 24,823.15.
On Friday, Powell’s much-anticipated comments at the Jackson Hole Economic Symposium hinted that the time has come for a shift in policy, fueling expectations of a rate cut at the upcoming Federal Reserve meeting on September 17-18. Analysts believe that a rate cut in the U.S. could lead to increased inflows into emerging markets like India, potentially supporting a continued rally in domestic equities.
Wall Street responded positively to Powell’s remarks, with equities ending sharply higher on Friday. Both foreign institutional investors (FII) and domestic institutional investors (DII) were net buyers of Indian stocks on the same day, purchasing shares worth approximately ₹19.44 billion ($232 million) and ₹28.96 billion, respectively.
By 9:15 a.m. IST, several IT stocks had already shown significant gains:
- Coforge surged over 1% to ₹6,118.30.
- Infosys rose nearly 1%.
- TCS climbed nearly 1% higher.
- HCL Tech increased by nearly 1%.
- Wipro was up by nearly 2%.
- Tech Mahindra saw a rise of nearly 2%.
- Persistent Systems jumped nearly 3%.
- Cyient also gained nearly 3%.
- Happiest Minds Technologies rose by nearly 2%.
This upward trend in IT stocks reflects growing optimism among investors, driven by expectations of favorable economic policies in the U.S.
