DBT Bureau
Bengaluru, June 15, 2024
The Nifty IT index, which measures the movement of major IT services and technology firms in India, lost momentum in the week ended June 15 after the US Federal Reserve forecast for just one rate cut this year compared to three projected earlier.
On Wednesday, the US central bank left the key lending rate unchanged and noted that only modest progress have been achieved toward its long-term inflation target of 2%.
The US central bank’s changed interest rate reduction plan dampened investors’ sentiment as a revival in technology spending would largely depend on a low interest rate regime.
The Nifty IT index fell 2.58% to close at 34,598.55 last week. The index was one of the top losers last week in an otherwise range-bound market. The Nifty 50 rose 0.28% to close at 23,465.60 on Friday.
Last week, the share price of Tata Consultancy Services fell 1.34% to close the trading week at Rs 3,833 on NSE. Infosys share price lost 1.70% to Rs 1,488.50 last week. Meanwhile, Wipro’s share price lost 0.41% to Rs 477.15 during the week. HCL Tech was the only exception as its share price rose 0.86% to Rs 1,431.20 last week.
Tech Mahindra shares rose 1.25% to Rs 1,372 last week. Similarly, LTIMindtree closed 2.17% up at Rs 5,025.60 per share during this period. However, Coforge’s share price ended the week at Rs 5,192.90, a fall of 3.84% over the previous week. The share price of L&T Technology Services (LTTS) rose 0.78% to close at Rs 4,848 last week.
While Nifty IT index fell, the Nasdaq eked out a fifth straight record closing high this week. The Nasdaq Composite ended 3.54% higher at 17,688.88 during the week. Adobe shares jumped 14.5% on Friday after the company raised its annual revenue forecast on more demand for its artificial intelligence-powered software. Chip giant Nvidia’s share price gained 9.58% to close at $131.88 on Friday.
