Nifty IT index slides 3.06% amid Fed rate fears
Indian IT stocks had a rough Wednesday, with the Nifty IT Index sliding 3.06%.
Big names like HCL Technologies, Infosys, and Tech Mahindra all saw their shares tumble. Coforge took the biggest hit, dropping 5.70%.
The main reasons? Worries that the US might raise interest rates soon, and some drama at Coforge after its chairman stepped down.
Om Prakash Bhatt resigns after audit
Stronger-than-expected US jobs data has investors thinking the Federal Reserve rate hike could be coming in September.
Since US clients are huge for Indian IT firms, higher rates could mean less spending on tech projects.
On top of that, Coforge's chairman Om Prakash Bhatt resigned after questions about the company's board evaluation process popped up during an audit, making investors even more cautious about IT stocks right now.