Indian Benchmark Indices Fall Over 0.5% as IT Earnings Pressure

Market Update at 4:00 PM: On Thursday, 24 July, Indian equities ended lower, with the Nifty 50 slipping 157.80 points or 0.63 per cent to 25,062.10 and the Sensex losing 542.47 points or 0.66 per cent to 82,184.17. Heavy selling in Large-Cap stocks such as Infosys and Reliance Industries weighed on sentiment. 

The Nifty IT index declined 2.21 per cent to a 2.5‑month low as persistent concerns over weak discretionary spending, pressure in key verticals, and US economic uncertainty led to declines of 1.2 per cent in Infosys and over 7 per cent each in Persistent Systems and Coforge.

Market performance was mixed across sectors, with only 4 of 11 indices closing higher, while Mid-Cap and Small-Cap benchmarks fell 0.58 per cent and 1.04 per cent, respectively, marking their sharpest one‑month intraday losses. Indian Energy Exchange shares plunged nearly 30 per cent on fears of market share erosion from a planned overhaul of power pricing. Persistent Systems dropped 7 per cent despite reporting a 39 per cent rise in quarterly profit. In contrast, BEML gained 3.21 per cent after securing a Rs 294‑crore Defence Ministry order for HMV 6X6 supply, and Dr Reddy’s Laboratories added 1.45 per cent on plans to launch a generic obesity drug in 87 countries in 2026.

PSU banks outperformed, with the Nifty PSU Bank index rising 1.24 per cent, led by Canara Bank and Indian Bank. Market breadth stayed weak as 1,863 stocks declined, 1,111 advanced, and 84 remained unchanged out of 3,058 traded. Seventy‑two shares hit 52‑week highs, 29 touched new lows, and 68 were locked in upper circuits against 54 in lower circuits. Tata Motors, Sun Pharmaceuticals, and Grasim provided the biggest support to the Nifty, while Infosys, Reliance Industries, and HDFC Bank exerted the heaviest drag.

Market Update at 12:30 PM: Indian stock markets were trading lower on Thursday as investors reacted to June quarter results of major companies including Infosys, Dr Reddy’s Labs, IEX, Coforge, and Tata Consumer Products. After a flat start, selling pressure intensified by noon, dragging both benchmark indices lower.

Around 12 PM, the BSE Sensex was at 82,200.58, down 526.06 points or 0.63 per cent, while the NSE Nifty50 declined 150.80 points or 0.60 per cent to 25,069.10. The session coincided with the weekly F&O expiry, adding to market volatility.

Among the Nifty50 constituents, Trent, Tech Mahindra, Reliance Industries, Infosys, Asian Paints, Bajaj Finance, SBI, HUL, and TCS were the Top Losers. On the other hand, Zomato (listed as Eternal), Tata Motors, Titan, Sun Pharma, and Tata Steel were among the gainers, providing some support to the index.

In the broader markets, mid-cap and small-cap indices underperformed. The Nifty MidCap index fell 0.76 per cent, while the Nifty SmallCap index dropped as much as 1.2 per cent, reflecting profit booking in smaller counters that had recently delivered multibagger returns.

Sectorally, the Nifty IT index emerged as the biggest loser, shedding 1.43 per cent as weak earnings dragged down technology stocks. Persistent Systems, Coforge, and Infosys slipped up to 6 per cent intraday after announcing their Q1 FY26 numbers. Other IT heavyweights, including TCS, LTIMindtree, and Mphasis, were also in the red.

The Nifty Realty and Nifty Private Bank indices also traded lower. However, the Nifty Pharma index gained 0.39 per cent, and the Nifty Metal index added 0.15 per cent, providing some resilience.

Market Update at 10:30 AM: Indian stock indices opened almost flat on Thursday as losses in IT counters weighed against optimism surrounding a possible free-trade deal with the UK.

At 9:18 a.m. IST, the Nifty 50 slipped 0.07 per cent to 25,201.9, while the BSE Sensex declined 0.13 per cent to 82,601.14. The IT index dropped 1 per cent, leading sectoral losses, with Coforge and Persistent Systems each falling 5.5 per cent and Infosys down 1 per cent following their quarterly earnings.

Although all three companies reported profit growth, analysts highlighted that ongoing structural challenges continue to impact the sector's outlook.

Meanwhile, broader Asian markets advanced, mirroring Wall Street gains after a U.S.-Japan trade agreement boosted expectations of further pacts and improved global risk sentiment. India and the UK are expected to finalise a free-trade agreement on Thursday during Prime Minister Narendra Modi’s visit to Britain.

Pre-Market Update at 7:45 AM: On Thursday, July 24, the GIFT Nifty indicated a positive start for Indian markets, trading near the 25,290 mark, up 41 points from its previous close as of 7:20 AM. Optimism over an upcoming US-European Union trade agreement and gains across Asian markets lifted sentiment for benchmark indices Nifty 50 and Sensex.

US equity markets ended higher on Wednesday, with the S&P 500 and Nasdaq posting record closes. Investor confidence improved after signals of progress in US-EU trade discussions following the earlier US-Japan pact under President Donald Trump. The S&P 500 gained 0.78 per cent to 6,358.91, the Nasdaq advanced 0.61 per cent to 21,020.02, and the Dow Jones Industrial Average climbed 1.14 per cent to 45,010.29, nearing its December peak.

Back home, Indian indices closed higher on Wednesday, with Nifty 50 up 0.63 per cent at 25,219.9 and Sensex gaining 0.66 per cent to 82,726.64. Optimism from global markets and expectations of future trade deals supported buying across large-cap and mid-cap stocks.

Market focus will remain on Q1FY26 Quarterly Results. Infosys’ earnings released post-market on Wednesday will be closely tracked. A total of 18 companies, including Bajaj Finance, Nestle India, SBI Life Insurance, CG Power and Industrial Solutions, REC, Adani Energy Solutions, Canara Bank, Indian Bank, Coromandel International, Motilal Oswal Financial Services, Supreme Industries, Hexaware Technologies, Mphasis, Phoenix Mills, APL Apollo Tubes, ACC and Aditya Birla Sun Life AMC, will announce results today.

Foreign Institutional Investors (FIIs) were net sellers on July 23, offloading equities worth Rs 4,209.11 crore, while Domestic Institutional Investors (DIIs) were net buyers with purchases totalling Rs 4,358.52 crore.

Gold prices held steady, with spot gold at USD 3,389.77 per ounce, up 0.1 per cent, as safe-haven demand eased on improved trade sentiment. Crude oil stayed firm, supported by trade progress and low inventories, with Brent at USD 68.72 per barrel and WTI at USD 65.48.

For today, Bandhan Bank, IEX and RBL Bank remain on the F&O ban list.

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