Policy uncertainty and rate outlook weigh on Indian IT stocks

Indian IT stocks weakened as US policy uncertainty and geopolitical tension raised caution around near-term global tech spending outlook.

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Policy uncertainty and rate outlook weigh on Indian IT stocks

Policy uncertainty and rate outlook weigh on Indian IT stocks
Indian IT stocks faced selling pressure following renewed global concerns over US monetary policy direction and tightening geopolitical dynamics between the United States and China. Market analysts said the sector’s heavy exposure to US clients has made it more sensitive to macroeconomic commentary, particularly after the Federal Reserve reiterated its higher-for-longer stance on interest rates. 
Additionally, investors remain cautious about potential disruptions in cross-border technology spending. While long-term digital transformation demand remains intact, brokerages expect short-term volatility and selective accumulation by institutional funds.