Mon, 02 Nov 2026
10:56:47 am
Rudransh Sangwan
Published at: September 18, 2026, 5:39 AM
Synopsis
Indian IT stocks are under pressure as investors track US interest rates, global technology sentiment and client spending. Check the key reasons behind the decline.

Indian IT stocks fell on September 17 after the US Federal Reserve raised interest rates by 25 basis points to 3.75% to 4%.
The Nifty IT index fell 0.77% to 28,862.70 in early trade. The index is down 7.29% on the monthly chart.
| Reason | Impact on IT stocks |
|---|---|
| Fed rate hike | Higher borrowing costs |
| Higher for longer rates | Pressure on growth stocks |
| Weak US market cues | Weighed on technology stocks |
| US revenue exposure | Increased sensitivity to US rates |
| Client spending concerns | Added pressure on IT demand |
The Federal Reserve raised rates by 25 basis points, taking its benchmark rate to 3.75% to 4%.
The Fed also signalled that borrowing costs could remain higher. The US 10 year Treasury yield moved above 5% after the decision.
US stocks ended lower after the Fed decision. The Dow Jones fell 1.21%, while the S&P 500 declined 0.45%.
Weak global technology sentiment added to pressure on Indian IT stocks, which have significant exposure to the US market.
The Fed is not the only concern for Indian IT companies. Investors are also watching slower client spending and weaker technology demand.
Artificial intelligence is also changing traditional software services, adding another area of focus for investors in Infosys, TCS, HCLTech, Wipro and Tech Mahindra.
| Factor | What to track |
|---|---|
| Fed policy | Future US rate decisions |
| US economy | Client spending and demand |
| IT earnings | Revenue and margin growth |
| AI spending | Impact on traditional services |
| Nifty IT | Sector trend and support levels |
Indian IT stocks remain sensitive to US interest rates, technology spending and global market sentiment. Investors will watch upcoming Fed signals and IT company results.
| IT stock | Early fall |
|---|---|
| HCL Technologies | -1.29% |
| Tech Mahindra | -1.17% |
| TCS | -1.12% |
| Wipro | -0.91% |
| Infosys | -0.80% |

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