Sensex, Nifty Trade Flat as IT Stocks Offset Broader Weakness

Indian equities were trading in a narrow range with a mild positive bias on Tuesday morning. As of 10:00 am IST, the BSE Sensex was up 55.84 points, or 0.07 per cent, at 76,891.62, while the Nifty 50 gained 14.85 points, or 0.06 per cent, to 24,010.80. Strength in technology stocks countered selling across Banks and select public sector companies.

The broader market remained mixed. The Nifty Midcap index edged up 0.04 per cent, while the Nifty Smallcap index slipped 0.42 per cent. The Nifty Bank was down about 0.30 per cent, with Bank of Baroda, Canara Bank, IndusInd Bank and SBI among the key drags. Market breadth was weak, with 1,365 shares advancing against 1,853 declining shares.

Sectorally, Nifty IT was the clear outperformer, rising nearly 3 per cent as TCS, Infosys, Tech Mahindra and HCL Technologies attracted buying. Nifty FMCG gained around 0.70 per cent, supported by Nestle India, Colgate Palmolive and Dabur India, while Nifty Realty advanced about 0.52 per cent. Nifty PSU Bank fell around 0.26 per cent, while Nifty Auto and Nifty Metal declined about 0.20 per cent and 0.18 per cent, respectively.

Among individual stocks, Coforge jumped around 5 per cent after reporting a 24.2 per cent sequential rise in rupee revenue to Rs 5,527.7 crore, although quarterly profit fell 15 per cent. RR Kabel surged over 6 per cent after Q1 net profit more than doubled to Rs 205.2 crore and revenue rose 54 per cent. Godfrey Phillips India dropped over 6 per cent after profit fell 44.3 per cent and revenue declined 18.9 per cent. Coal India slipped nearly 3 per cent after Q1 profit increased only 0.6 per cent despite revenue growth of 7.8 per cent.

The latest available institutional data showed foreign institutional investors remained net sellers on Monday, offloading equities worth Rs 1,688 crore. Domestic institutional investors provided support by purchasing shares worth Rs 2,329 crore.

Global cues were mixed. The S&P 500 ended almost flat with a 0.02 per cent gain, the Dow rose 0.51 per cent and the Nasdaq slipped 0.18 per cent. Asian technology markets were sharply lower, with South Korea’s Kospi down around 9 per cent and Japan’s Nikkei falling more than 4 per cent amid concerns over artificial intelligence spending. Lower crude offered some relief, with Brent falling 1.38 per cent to around USD 87.14 a barrel and WTI easing to USD 81.47.

For the rest of the session, the Nifty’s ability to hold above 24,000 will remain important. Immediate resistance is placed around 24,100 to 24,200, while support is visible in the 23,800 to 23,900 zone. Monthly derivatives expiry, ongoing Q1 earnings and the US Federal Reserve’s policy decision may keep volatility elevated.

This is Market commentary intended to explain current trends, not a call to buy or sell securities.

Disclaimer: The article is for informational purposes only and not investment advice.