IT Stocks: Infosys, TCS, Tech Mahindra Shares Drop as Fed Policy Cues Loom

Shares of India’s major IT firms fell on Monday, September 15, 2025, as investors awaited direction from the U.S. Federal Reserve on potential interest rate cuts. Among the worst-hit were Infosys, TCS, and Tech Mahindra, each dropping nearly 1%, while the entire Nifty IT index slipped close to 1%. All ten constituents of the sectoral index traded in red. 

Buyback Fails to Insulate Infosys

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Even though Infosys approved an ₹18,000 crore share buy-back last week — set at ₹1,800 per share for up to 2.41% of its equity — that move didn’t prevent its shares from falling around 1.32%, closing at ₹1,505.40 on the NSE,  last week. Investor focus remained heavily on broader macro cues and Fed policy rather than company-specific actions. 

Fed Moves, Rate Cut Expectations

Markets are largely expecting a 25 basis-point rate cut from the Fed in its two-day policy meeting this week. Rates have been steady at 4.25-4.50% since the last cut in December. Investors are particularly interested in Fed Chair Jerome Powell’s upcoming comments for clues on the future pace and timing of further cuts. 

Sector-Wide Weakness

Alongside Infosys, TCS, and Tech Mahindra share price saw similar declines of up to about 0.58%. The Nifty IT index, having posted gains in previous sessions, reversed those gains, turning into one of the worst-performing sectoral indices during Monday’s trading. The declines reflect growing concern about how future interest rate decisions and global inflation may affect the IT sector’s growth and margins. 

Conclusion

IT stocks in India opened the week on a weak note, weighed down by anticipation around the U.S. Fed’s rate cut path. Despite positive company-specific actions like buybacks, investor sentiment remains focused on macroeconomic indicators. With expectations of a modest rate cut, the direction and guidance from the Fed — especially through Jerome Powell — will be crucial for IT stock performance in the near term.