IT Stocks Today: IT stocks fell today but why is Wipro rising? This is the biggest reason

News Topical, Digital Desk : The US central bank Federal Reserve has once again kept the interest rates unchanged. This is the third consecutive time that the Fed has kept the rates unchanged. The Fed has also hinted at a rate cut twice this year. But, after this decision, action is being seen in the Indian stock market. On Thursday, June 19, pressure is being seen on the shares of IT companies. Amid concerns over inflation in the US, IT companies are expected to be adversely affected. Apart from this, this pressure is being seen due to the increasing tension between the US and Iran.

After this fall in IT stocks, the Nifty IT index is seen falling by about one percent. Global brokerage firms CLSA and Morgan Stanley have also presented a cautious view on IT stocks.

Analysts fear slowdown in demand
Morgan Stanley has downgraded Tech Mahindra's rating to Underweight and set a target price of Rs 1,575 per share. But, the brokerage firm has upgraded the rating on Wipro to Equal-weight and set a target price of Rs 265 per share.

Morgan Stanley analysts believe that the income CAGR of IT companies may remain sluggish. The deal pipeline is also indicating weak discretionary spending in the US. CLSA is also expecting a slowdown in demand in most verticals.

What did Jerome Powell say? Giving information about the decision taken in the FOMC meeting, Fed Chairman Jerome Powell has expressed the possibility of rising inflation in the coming times. He says that the Trump administration has imposed heavy tariffs on imports, due to which American customers will now have to spend more on goods. Powell said, "Everyone I know is predicting inflation to rise in the coming months due to tariffs. They know that someone (manufacturer, exporter, importer, retailer) will have to pay for the tariffs... People will avoid doing this but it cannot be avoided." If inflation rises in America, discretionary demand here will also weaken and it will likely affect IT companies. A large part of the income of Indian IT companies comes from America. In such a situation, no reduction in rates and increase in consumer demand will affect IT companies. How are IT companies doing today? By the afternoon session on Thursday, Tech Mahindra was trading 2% lower at ₹1,675, LTI Mindtree 2.3% lower at ₹5,321, Infosys was trading 1% lower at ₹1,618 per share. HCL Tech and TCS saw a decline of nearly one percent. Persistent Systems was trading 1.5% lower and Coforge was trading 2.2% lower. In contrast, Wipro was trading 1% higher at ₹264 per share. It is worth noting that in the recent past, IT stocks had seen a good rise due to the expectation of a cut in interest rates. Till June 16, during 8 out of 9 sessions, the total market capitalization of the Nifty IT index had seen a gain of about Rs 1.6 lakh crore. 

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