On August 22, 2025, at 10 a.m. Eastern Time, U.S. Federal Reserve Chairman Jerome Powell gave his speech at the Jackson Hole Economic Policy Symposium. In simple words, Powell said that the U.S. economy is showing some signs of weakness in jobs, and because of that, the Fed may need to cut interest rates on 16-17 September.
This hint of a possible rate cut created a positive impact on global markets. For India, the biggest benefit was seen in the IT sector, because when interest rates in the U.S. go down, companies there usually spend more on outsourcing and technology.
And stockYaari has given green signal after this news on TCS, Infosys, and HCL Tech moved after this news through our green signal Stock moved . On our StockYaari App, these IT stocks also showed green signals, meaning investors could spot this move on time with our timely alerts.
Why the Fed Matters for Indian IT Companies
The U.S. Federal Reserve’s monetary policy has far-reaching effects on global markets, and India’s IT sector is one of the most sensitive.
Reasons behind –Revenue Dependence: A large chunk of revenues for Indian IT majorly come from companies like Infosys, TCS, and Wipro comes from U.S. clients.
Stronger Client Spending: Lower interest rates in the U.S. Helps businesses to spend more on technology, digital transformation, and outsourcing.
Currency Impact: A dovish Fed often weakens the U.S. dollar, which also influence margins and export competitiveness for Indian IT firms.
Market Reaction Today
The Nifty IT Index rose strongly and did better than the overall market, as hopes of a U.S. Fed rate cut lifted confidence in tech stocks. Like Infosys, TCS, and Wipro were among the top gainers, rising between 2–4%, and driving most of the sector’s strength.
With IT stocks leading the way and global trends supporting, the Sensex went up by 329 points, while Nifty inched closer to the 25,000 level, showing strong market mood.
Wider Market Implications
Apart from IT, sectors like pharma, textiles, and specialty chemicals may also benefit, as a Fed rate cut can boost global liquidity and overseas demand, giving Indian exporters a lift.
Cheaper Global Borrowing: Lower U.S. interest rates reduce the cost of capital for multinational companies and emerging market borrowers, encouraging investment flows into India and strengthening the rupee.
A rate cut makes stocks more appealing than bonds, which attracts more foreign investors (FII) into Indian markets and pushes up valuations across sectors.
Macro Tailwinds: By supporting global economic growth and trade, a Fed cut provides India with a favorable environment for GDP growth, current account stability, and sectoral expansion.
Conclusion
The rally in IT stocks shows how global news like U.S. Fed policy impacts Indian markets. With most IT companies depending on U.S. clients, rate-cut hopes have boosted optimism. Lower U.S. rates usually mean more spending on outsourcing and tech projects. This is why Infosys, TCS, and Wipro saw strong gains in Nifty IT. Other export-driven sectors may also benefit if the Fed cuts rates in September. For now, market sentiment remains positive, but all eyes are on the Fed’s final decision.