Will IT sector be the dark horse of 2024 on rate cuts? What analysts say

Most global traders now expect the first Fed rate cut to be announced in June against early bets of March

Information technology (IT) companies have been on the road to revival in the past one year. From being the worst-hit sector in 2022 with a loss of 26 per cent, the Nifty IT index closed 2023 with gains of 24 per cent.

So far in 2024, the index is up around 7 per cent against the nearly flat Nifty 50 benchmark index. The IT index has been on a continuous decline in the last three sessions. This comes after surprisingly hotter-than-expected inflation in the US last week pushed back bets of imminent rate cuts by the US Federal Reserve (Fed).
 

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