Shares of Infosys, other IT companies down today ahead of US Federal Reserve monetary policy announcement

Shares of Infosys are down today. At 3:05 p.m. IST, the stock price is down by 0.91%, trading at Rs 1,584.50. Nifty 50 index is down by 0.33% at this time. Some other major IT stocks are also down today. TCS is down by 0.67% at this time. Tech Mahindra shares are down by 0.61%.

Rupee showing marginal appreciation against the dollar

IT stocks are seeing selling today after the decline in rupee got somewhat arrested yesterday and today. Before that these stocks had gained when rupee depreciated and crossed the Rs 90/ dollar mark. Currently rupee is trading at Rs 89.94 / dollar mark.

Expected US Federal Reserve interest rate cut may bring some relief for rupee

There is high expectation that US Federal Reserve will cut down its benchmark interest rate today by 25 basis points. One basis point is 0.01%. If this interest rate cut happens then dollar may show some depreciation. So there is a chance that rupee may see some appreciation during the next one, two days.

Infosys and other IT companies earn a large portion of their revenues in US dollars. USA is the biggest market for most of these companies. More than 60% of the revenue of Infosys currently comes from the US market. When the rupee depreciates against the dollar, the value of the dollar revenues of these companies in rupee terms increases. A large part of the costs of Infosys and other IT companies is paid in rupee terms. So appreciation of dollar against the rupee also has a positive impact on the profitability of these companies. The reverse happens when the rupee appreciates against the dollar (dollar depreciates).

An interest rate cut may also give a boost to the US economy. More economic demand can also result in increased IT spending by US companies. This is also a positive for Indian IT companies. These companies provide IT services to US companies.

Rupee has depreciated by 5.97% against the dollar in the past 1 year

The rupee has been the worst performing currency in Asia, against the dollar, in the past 1 year.  It has depreciated against the dollar by 5.97% in the past 1 year.

Infosys shares have lost 15.83% year-to-date (YTD) in 2025. Nifty IT index has lost 13.69% in this period. Risk for Indian IT companies increased this year after US President Donald Trump took office in January 2025. The protectionist measures that he has put in place since then has hurt sentiments regarding Indian IT stocks.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE