Sensex, Nifty Trade Flat as IT Rally Offsets Weak Banks and Earnings Pressure

Indian equities remained rangebound on Tuesday, with a sharp rally in technology shares offset by weakness in Banks, energy counters and select earnings-related stocks. At around 2 pm, the Sensex was down 9.25 points, or 0.01 per cent, at 76,826.53, while the Nifty 50 was up 3.75 points, or 0.02 per cent, at 23,999.70.

The broader market remained weaker than the headline indices. The Nifty Bank slipped around 0.3 per cent, weighed down by Bank of Baroda, Canara Bank, IndusInd Bank and major private lenders. The Nifty Midcap 100 was largely flat, while the Nifty Smallcap 100 declined around 0.3 per cent. Market breadth stayed under pressure, with 1,448 shares advancing against 2,351 declines across tracked stocks.

Sectorally, Nifty IT was the clear outperformer, jumping around 4 per cent. Coforge, TCS, Mphasis, Persistent Systems, Tech Mahindra and Infosys led the rally after Jefferies upgraded the Indian IT sector to neutral from underweight. Investors also viewed Indian IT companies as relatively insulated from the heavy funding requirements affecting global AI-linked businesses.

Nifty Realty gained more than 1 per cent, led by Lodha Developers, which surged nearly 7 per cent. On the losing side, Nifty Energy was the weakest major sector, while Nifty Bank and Nifty Media declined around 0.3 per cent each. Lower crude prices helped oil consumers but weighed on upstream and energy-linked stocks.

Among individual movers, Coforge jumped about 9.4 per cent and TCS gained 5.2 per cent as buying intensified across technology stocks. Hindustan Unilever fell around 3.7 per cent after its June quarter profit declined and higher costs pressured sentiment. Varun Beverages dropped as much as 5 per cent after its EBITDA margin contracted by 76 basis points to 27.7 per cent following the consolidation of the lower-margin Twizza business.

Institutional flows remained mixed. According to the latest provisional data for July 27, foreign institutional investors were net sellers of shares worth Rs 1,688.23 crore, while domestic institutional investors purchased equities worth Rs 2,329.14 crore.

Global cues were cautious. The Dow gained 0.5 per cent overnight, while the S&P 500 finished almost flat and the Nasdaq slipped 0.2 per cent as Nvidia fell 5 per cent. Asian technology markets witnessed a much sharper sell-off, with South Korea’s Kospi falling 10.8 per cent and Japan’s Nikkei declining over 4 per cent. Brent crude eased about 1.2 per cent to nearly USD 87.3 per barrel, providing some support to Indian sentiment ahead of the US Federal Reserve’s policy decision.

Going into the final phase of trade, the Nifty’s immediate support is placed around 23,890 to 23,910, while resistance is seen near 24,140 to 24,160. Investors will also track the Fed’s policy commentary and upcoming Quarterly Results from companies including Larsen & Toubro and Ambuja Cements.

This remains a fast-moving, news-driven market, and the figures may change before the closing bell.

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