Indian IT stocks declined on June 18 as investor sentiment weakened following signals from the US Federal Reserve that future interest rate hikes remain a possibility. The sector's weakness contrasted with the broader market, which remained relatively firm during the session.

Large-cap technology companies including Infosys, Tata Consultancy Services, HCL Technologies, and Wipro were among the top losers on the Nifty 50 index. The selling pressure pushed the Nifty IT index down by nearly 1.8 percent, making it the worst-performing sector on the National Stock Exchange.

Market participants closely monitor US monetary policy due to the significant revenue exposure of Indian IT companies to North America. Higher interest rates can impact corporate technology spending, delay digital transformation projects, and create uncertainty around future demand for IT services.

The decline in IT stocks also reflected investor concerns that a prolonged high-interest-rate environment in the United States could affect discretionary spending by global clients. Given the sector's dependence on overseas markets, especially the US, changes in the Federal Reserve's policy outlook often influence valuations and investor sentiment toward Indian technology companies.

Despite the weakness in IT shares, broader market sentiment remained positive, with gains in other sectors helping support the benchmark indices.