IT Stocks Rescue Dalal Street as Sensex, Nifty Recover from Sharp Opening Losses

Indian benchmark indices staged a strong recovery from the morning sell-off, with buying in information technology stocks helping the market erase most of its losses. At around 2:00 PM, the Sensex traded near 77,620, up nearly 50 points or 0.06 per cent, while the Nifty 50 hovered around 24,204, down just 3 points or 0.01 per cent.

Earlier in the session, the Sensex had declined by more than 700 points, while the Nifty briefly tested the 24,000 mark.

The broader market remained relatively subdued. The Nifty Bank traded almost unchanged at around 58,029, while the Nifty Midcap 100 slipped 0.10 per cent to 62,975. The Nifty Smallcap 100 was largely flat near 19,417, indicating that the recovery was concentrated mainly in select Large-Cap stocks rather than across the broader market.

Sectorally, the Nifty IT index was the clear outperformer, jumping 3.79 per cent as all 10 constituents traded in the green. TCS, HCL Technologies, Tech Mahindra and Infosys led the rally. The Nifty Media index advanced 1.21 per cent, while the Nifty Services Sector index gained around 0.25 per cent.

On the losing side, the Nifty FMCG index declined 1.02 per cent, Nifty Metal fell 0.83 per cent and the Nifty India Consumption index slipped 0.65 per cent. Higher crude oil prices, weakness in Asian equities and concerns over inflation weighed on consumption, financial and commodity-linked sectors.

Among individual stocks, TCS surged about 5.6 per cent to Rs 2,185 after securing a multi-million, multi-year contract from ABB to transform the industrial major’s global network operations using artificial intelligence. The stock has gained around 8 per cent over the last two sessions.

Just Dial jumped nearly 13 per cent after reporting quarterly net profit of Rs 166 crore and revenue growth of 10 per cent, along with the appointment of a new chief executive officer and chief financial officer.

Avantel climbed as much as 10 per cent after its Q1FY27 revenue increased 36 per cent and net profit rose 67 per cent. In contrast, Swiggy fell as much as 5 per cent to Rs 266 after the FSSAI issued nine notices to Swiggy Instamart following consumer complaints.

Institutional data for the current session will be released after market hours. In the latest available session on July 10, foreign institutional investors were net buyers of Rs 2,847.69 crore, while domestic institutional investors purchased equities worth a net Rs 1,596.04 crore. Sustained institutional buying provided some support during the volatile session.

Global cues remained cautious. Brent crude climbed 3.51 per cent to USD 78.68 per barrel amid renewed US-Iran hostilities and concerns over shipments through the Strait of Hormuz. Japan’s Nikkei declined 1.92 per cent, while US stock futures also traded lower.

A stronger US dollar and a weaker rupee, which traded near Rs 95.76 against the US currency, added to the pressure on domestic equities.

For the remaining session, the Nifty’s immediate support is placed around 24,090 to 24,040, followed by 23,800. Resistance is visible around 24,300 to 24,400. Investors will closely track crude oil prices, West Asia developments, June inflation data and upcoming Q1FY27 corporate earnings.

The market remains highly news-driven, and Intraday levels may change quickly.

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