IT stocks in focus today: Domestic technology stocks gained sharply in Wednesday’s trading session, even as the broader market continued to trade within a narrow range. Infosys share price jumped nearly 3% to hit the day’s high of ₹1,649 apiece, while Wipro gained 2%. MphasiS and TCS each rose more than 1.5%.
Nine out of 10 constituents of the Nifty IT index traded in the green, pushing the index up by 1.8% to an intraday high of 39,519. The index ended June with a strong gain of 4.36%, continuing the bullish momentum from May, when it advanced 4.30%.
What’s fueling the rally in tech stocks?
The positive sentiment in Indian IT stocks followed dovish comments from the US Federal Reserve. Fed Chair Jerome Powell, speaking at a central banking conference in Portugal, reiterated that the central bank plans to wait for more economic data before initiating rate cuts but did not rule out a possible cut in July.
During a discussion on Tuesday, Fed Chair Jerome Powell was asked whether a rate cut in July was plausible. He responded that it was too early to say and emphasized that any decision would hinge on upcoming economic data.
Powell also remarked that, if not for inflationary pressures stemming from tariff policies introduced during the Trump administration, the Fed might have already moved to ease rates.
His comments come at a time when the US central bank is holding steady on rates, despite increasing scrutiny and political pressure, raising questions about potential informal influence from the White House.
The Federal Reserve kept its benchmark interest rate unchanged last month at the 4.25%–4.50% range, a level it has maintained since December.
On Thursday, traders increased their bets on rate cuts this year, with the probability of three reductions rising to about 60%, up from strong expectations of just two cuts earlier in the week, according to CME Group data.
Meanwhile, Senate Republicans advanced their own version of the administration’s tax-and-spending package, a proposal that could potentially expand the federal deficit by over $3 trillion over the next decade.
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