Broadly, there were three reasons for the IT stocks correcting sharply on Thursday with the NSE IT index down by nearly 1.6% in a single day. Firstly, the US Fed announced no hikes in interest rates. Lower rates leads to dollar weakening and the Indian IT companies always tend to benefit from a stronger dollar since they have dollar earnings. A weak dollar works against IT companies. Secondly, the recent US cases of IT employees being denied renewal of H1-B visas when they shift jobs is become a major predicament for these IT companies. It is likely to impact their offsite business. Lastly, most IT stocks have rallied sharply in the last one year and valuations had also reached the upper end of the valuation comfort zone. That also pushed IT stocks lower on Thursday.