Shares of Newgen Software Technologies Ltd surged 4.62% to ₹925.45 on Thursday, supported by strong trading volumes and sector-wide momentum after the U.S. Federal Reserve’s rate cut. The stock opened higher and hit an intraday peak of ₹919, compared to the previous close of ₹884.60, taking its market capitalization to ₹1.26 lakh crore.
Market participants noted that Newgen shares featured among the top traded counters, reflecting heightened investor interest. The boost in volumes comes amid renewed optimism for Indian IT stocks, following the Fed’s 25 basis point rate cut, which is expected to improve global risk appetite and benefit technology companies.
The Fed lowered rates for the first time this year on Wednesday to address the weakness emerging in the labour market. However, Fed Chair Jerome Powell tempered aggressive easing expectations, stressing that Wednesday’s move was more of a risk-management cut and that the central bank does not need to move quickly on rates.
Lower U.S. interest rates make emerging markets such as India attractive to foreign portfolio investors (FPIs), as Treasury yields and the dollar typically decline in such a scenario. Analysts believe this backdrop is driving renewed attention towards Indian equities, particularly IT firms, which derive a significant share of revenues from overseas clients.
