The question in everyone’s mind is which are the two sectors that can get hit the most in the coming times. One sector is the IT sector and the other is the pharma sector. Both these sectors saw huge profit booking today because if there is a rate cut, the weak dollar will affect the margins of these two sectors. Both these sectors of India are export oriented and this is the reason why both these sectors saw huge profit booking today.
IT index down by about 3.05%
Today, the IT index fell by around 3.05%. This was a nearly two-week low for the index. Mphasis fell the most by 5.6%, followed by L&T Technology Services, Persistent Systems, Tata Consultancy Services, HCL Technologies and Tech Mahindra, which declined between 3% and 4%. Key companies like Wipro, Infosys, Coforge and LTI Mindtree also declined between 1% and 3.1%. As a result, the Nifty IT index has declined by 2.02% so far in September.
A decline in the IT sector impacted the broader market, with key players such as Infosys, TCS, HCL Tech and Tech Mahindra dragging the Nifty 50 index lower. However, support from financial stocks helped prevent a sharp decline in the overall market.
The market has already anticipated a 25 basis point interest rate cut
It is worth noting that the market had already anticipated a 25 basis point interest rate cut, but some expected a 50 basis point cut, which could have led to a rise in the stock market. “A rate cut of 25-50 basis points is expected in today’s meeting,” said Harish V, Head of Commodities at Geojit Financial Services.