Benchmark equity indices began Tuesday’s trading session on a mildly negative note, weighed down largely by weakness in information technology stocks, which dampened overall market sentiment in early trade.
Around 9:22 am, the S&P BSE Sensex was trading 58.36 points lower at 85,509.12, while the NSE Nifty50 slipped 20.20 points to 26,152.20. The cautious tone was also reflected across the broader market, with most mid-cap and small-cap indices trading marginally in the red.
IT stocks were among the biggest early drags on the market. Heavyweights such as Infosys, TCS, Tech Mahindra, HCLTech, and Wipro came under pressure in early trade. The weakness followed reports that several large US technology firms have advised employees on H-1B visas to avoid international travel for the time being, a development that has raised concerns among investors about near-term demand visibility for the sector.
Commenting on the market outlook, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the near-term direction of the market will be shaped by a balance between supportive domestic fundamentals and challenging global factors. He noted that India’s macroeconomic indicators and underlying fundamentals remain strong, which could encourage bullish sentiment and potentially push the Nifty and Sensex to fresh highs in the near future.
However, he cautioned that external factors continue to pose headwinds. According to Vijayakumar, the renewed strength in global artificial intelligence-related trades is a mild negative for Indian markets, as it could delay the expected reversal of foreign institutional investor outflows. He added that volatility in AI-linked global trades may persist, making it uncertain how quickly overseas flows will stabilise. At the same time, he pointed out that defence stocks appear to be regaining momentum and still have scope for further upside, while the IT sector has shown signs of resilience despite the current weakness.
From a technical perspective, Anand James, Chief Market Strategist at Geojit Financial Services, said the structure of the Nifty has improved in recent sessions. He highlighted that a clear breakout above the declining trendline that had capped the index earlier this month has strengthened confidence in the possibility of the Nifty moving towards 26,300 and beyond.
James also noted that the key downside level for the index has shifted higher to around 26,100. A decisive move below this level, he said, could result in a phase of sideways consolidation rather than a sharp decline, suggesting that while near-term volatility may persist, the broader trend remains constructive.
