Infosys, LTIMindtree, Wipro lead IT rally as Fed trims rates

Indian IT stocks surged on September 18, extending their winning streak for a third consecutive session, after the US Federal Reserve announced its first interest rate cut in nearly a year. The Nifty IT index jumped 1.5 percent to 37,006 in morning trade, emerging as the top sectoral gainer in the market. Shares of heavyweight companies such as !Infosys,

ndtree, !Wipro, and !Tech Mahindra rose up to 3 percent, boosting investor sentiment across the sector. Why IT stocks are rallying The rally comes on the back of the Fed’s decision on September 17 to lower its benchmark interest rate by 25 basis points to 4–4.25 percent, a move that was widely anticipated by analysts. This marks the first rate cut since December 2024 and also the first under Donald Trump’s second presidential term. Lower US interest rates typically strengthen demand for outsourcing and technology services, as businesses ramp up investments amid improved liquidity conditions. With the majority of Indian IT revenues stemming from the US, the rate cut is seen as a positive for earnings outlook in the coming quarters.