Sensex, Nifty ends marginally lower as IT stocks cushion market fall
The BSE Sensex settled 69.86 points, or 0.09%, lower at 76,765.92, while the NSE Nifty50 slipped 10.60 points, or 0.04%, to close at 23,985.35 after trading above the 24,000 mark during the session.
Benchmark equity indices ended marginally lower on Tuesday as a rally in information technology stocks helped cushion losses in banking, FMCG and power shares, while investors remained cautious ahead of this week's policy decisions by the US Federal Reserve, Bank of England and Bank of Japan.
The BSE Sensex settled 69.86 points, or 0.09%, lower at 76,765.92, while the NSE Nifty50 slipped 10.60 points, or 0.04%, to close at 23,985.35 after trading above the 24,000 mark during the session.
Despite the muted finish, IT stocks stood out as the biggest gainers. The Nifty IT index surged 3.32%, outperforming all other sectoral indices. TCS climbed 4.39%, Tech Mahindra gained 3.53%, Infosys rose 2.40% and HCLTech added 1.91%, while Eternal advanced 3.92%.
Mayank Jain, Market Analyst at Share.Market by PhonePe, said the rally reflected a shift in investor preference rather than improving sentiment towards global technology stocks.
"Amid a sharp sell-off across East Asian technology hubs driven by escalating fears over debt-fueled artificial intelligence (AI) capital expenditure and uncertain return-on-investment timelines, India's technology services sector has demonstrated remarkable resilience," he said.
He noted that while semiconductor companies across South Korea, Taiwan and Japan faced heavy selling, investors rotated into Indian IT companies because they operate an asset-light services model and have limited exposure to expensive AI infrastructure investments. Having already undergone a significant valuation correction over the past few quarters, Indian IT stocks are now being viewed as attractive defensive bets.
The strength in technology stocks, however, was not enough to offset weakness elsewhere. Hindustan Unilever tumbled 7.12% to emerge as the biggest loser on the Sensex after its quarterly earnings, while BEL declined 4.47%. NTPC fell 2.11%, ICICI Bank lost 1.81%, Power Grid dropped 1.19% and SBI, Tata Steel and Reliance Industries also ended in the red.
Sectoral trends remained mixed. Alongside IT, Realty gained 2.17%, Auto rose 0.69% and Consumer Durables advanced 1.08%. On the other hand, FMCG fell 1.38%, Chemicals lost 1.25%, PSU Bank slipped 0.96% and Metal declined 0.61%. Broader markets also painted a mixed picture, with the Nifty Midcap 50 rising 0.22%, while the Nifty Smallcap 100 fell 0.22%. India VIX eased 1.75% to 12.44, indicating lower volatility.
Lower crude oil prices continued to lend support to domestic markets. Brent crude dropped nearly 3% to $85.86 a barrel, while WTI crude slipped 2.53% to $80.52. The decline also boosted the rupee, which strengthened to 95.8525 against the US dollar, its strongest closing level in two weeks, helped by softer oil prices and likely intervention by the Reserve Bank of India.
Vinod Nair, Head of Research at Geojit Investments Limited, said easing crude prices offered relief, although investors remained cautious ahead of key macro events.
"The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures. However, investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ," he said.
He added that expectations of status quo on interest rates, India's relative advantage under the revised US tariff framework, improving monsoon conditions and gradually better first-quarter earnings have supported the broader market outlook, while attractive valuations continue to keep IT stocks in favour.
From a technical perspective, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty continued to trade in a narrow range, reflecting indecision among traders.
"The index remained range-bound during the day, with the regular monthly expiry volatility largely absent. A decisive move above 24,050 could open the door towards 24,500 in the short term, while immediate support is seen around 23,920, followed by 23,800," he said.
Benchmark equity indices ended marginally lower on Tuesday as a rally in information technology stocks helped cushion losses in banking, FMCG and power shares, while investors remained cautious ahead of this week's policy decisions by the US Federal Reserve, Bank of England and Bank of Japan.
The BSE Sensex settled 69.86 points, or 0.09%, lower at 76,765.92, while the NSE Nifty50 slipped 10.60 points, or 0.04%, to close at 23,985.35 after trading above the 24,000 mark during the session.
Despite the muted finish, IT stocks stood out as the biggest gainers. The Nifty IT index surged 3.32%, outperforming all other sectoral indices. TCS climbed 4.39%, Tech Mahindra gained 3.53%, Infosys rose 2.40% and HCLTech added 1.91%, while Eternal advanced 3.92%.
Mayank Jain, Market Analyst at Share.Market by PhonePe, said the rally reflected a shift in investor preference rather than improving sentiment towards global technology stocks.
"Amid a sharp sell-off across East Asian technology hubs driven by escalating fears over debt-fueled artificial intelligence (AI) capital expenditure and uncertain return-on-investment timelines, India's technology services sector has demonstrated remarkable resilience," he said.
He noted that while semiconductor companies across South Korea, Taiwan and Japan faced heavy selling, investors rotated into Indian IT companies because they operate an asset-light services model and have limited exposure to expensive AI infrastructure investments. Having already undergone a significant valuation correction over the past few quarters, Indian IT stocks are now being viewed as attractive defensive bets.
The strength in technology stocks, however, was not enough to offset weakness elsewhere. Hindustan Unilever tumbled 7.12% to emerge as the biggest loser on the Sensex after its quarterly earnings, while BEL declined 4.47%. NTPC fell 2.11%, ICICI Bank lost 1.81%, Power Grid dropped 1.19% and SBI, Tata Steel and Reliance Industries also ended in the red.
Sectoral trends remained mixed. Alongside IT, Realty gained 2.17%, Auto rose 0.69% and Consumer Durables advanced 1.08%. On the other hand, FMCG fell 1.38%, Chemicals lost 1.25%, PSU Bank slipped 0.96% and Metal declined 0.61%. Broader markets also painted a mixed picture, with the Nifty Midcap 50 rising 0.22%, while the Nifty Smallcap 100 fell 0.22%. India VIX eased 1.75% to 12.44, indicating lower volatility.
Lower crude oil prices continued to lend support to domestic markets. Brent crude dropped nearly 3% to $85.86 a barrel, while WTI crude slipped 2.53% to $80.52. The decline also boosted the rupee, which strengthened to 95.8525 against the US dollar, its strongest closing level in two weeks, helped by softer oil prices and likely intervention by the Reserve Bank of India.
Vinod Nair, Head of Research at Geojit Investments Limited, said easing crude prices offered relief, although investors remained cautious ahead of key macro events.
"The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures. However, investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ," he said.
He added that expectations of status quo on interest rates, India's relative advantage under the revised US tariff framework, improving monsoon conditions and gradually better first-quarter earnings have supported the broader market outlook, while attractive valuations continue to keep IT stocks in favour.
From a technical perspective, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty continued to trade in a narrow range, reflecting indecision among traders.
"The index remained range-bound during the day, with the regular monthly expiry volatility largely absent. A decisive move above 24,050 could open the door towards 24,500 in the short term, while immediate support is seen around 23,920, followed by 23,800," he said.
Benchmark equity indices ended marginally lower on Tuesday as a rally in information technology stocks helped cushion losses in banking, FMCG and power shares, while investors remained cautious ahead of this week's policy decisions by the US Federal Reserve, Bank of England and Bank of Japan.
The BSE Sensex settled 69.86 points, or 0.09%, lower at 76,765.92, while the NSE Nifty50 slipped 10.60 points, or 0.04%, to close at 23,985.35 after trading above the 24,000 mark during the session.
Despite the muted finish, IT stocks stood out as the biggest gainers. The Nifty IT index surged 3.32%, outperforming all other sectoral indices. TCS climbed 4.39%, Tech Mahindra gained 3.53%, Infosys rose 2.40% and HCLTech added 1.91%, while Eternal advanced 3.92%.
Mayank Jain, Market Analyst at Share.Market by PhonePe, said the rally reflected a shift in investor preference rather than improving sentiment towards global technology stocks.
"Amid a sharp sell-off across East Asian technology hubs driven by escalating fears over debt-fueled artificial intelligence (AI) capital expenditure and uncertain return-on-investment timelines, India's technology services sector has demonstrated remarkable resilience," he said.
He noted that while semiconductor companies across South Korea, Taiwan and Japan faced heavy selling, investors rotated into Indian IT companies because they operate an asset-light services model and have limited exposure to expensive AI infrastructure investments. Having already undergone a significant valuation correction over the past few quarters, Indian IT stocks are now being viewed as attractive defensive bets.
The strength in technology stocks, however, was not enough to offset weakness elsewhere. Hindustan Unilever tumbled 7.12% to emerge as the biggest loser on the Sensex after its quarterly earnings, while BEL declined 4.47%. NTPC fell 2.11%, ICICI Bank lost 1.81%, Power Grid dropped 1.19% and SBI, Tata Steel and Reliance Industries also ended in the red.
Sectoral trends remained mixed. Alongside IT, Realty gained 2.17%, Auto rose 0.69% and Consumer Durables advanced 1.08%. On the other hand, FMCG fell 1.38%, Chemicals lost 1.25%, PSU Bank slipped 0.96% and Metal declined 0.61%. Broader markets also painted a mixed picture, with the Nifty Midcap 50 rising 0.22%, while the Nifty Smallcap 100 fell 0.22%. India VIX eased 1.75% to 12.44, indicating lower volatility.
Lower crude oil prices continued to lend support to domestic markets. Brent crude dropped nearly 3% to $85.86 a barrel, while WTI crude slipped 2.53% to $80.52. The decline also boosted the rupee, which strengthened to 95.8525 against the US dollar, its strongest closing level in two weeks, helped by softer oil prices and likely intervention by the Reserve Bank of India.
Vinod Nair, Head of Research at Geojit Investments Limited, said easing crude prices offered relief, although investors remained cautious ahead of key macro events.
"The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures. However, investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ," he said.
He added that expectations of status quo on interest rates, India's relative advantage under the revised US tariff framework, improving monsoon conditions and gradually better first-quarter earnings have supported the broader market outlook, while attractive valuations continue to keep IT stocks in favour.
From a technical perspective, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty continued to trade in a narrow range, reflecting indecision among traders.
"The index remained range-bound during the day, with the regular monthly expiry volatility largely absent. A decisive move above 24,050 could open the door towards 24,500 in the short term, while immediate support is seen around 23,920, followed by 23,800," he said.
