Sensex and Nifty halt a three-day upward movement as IT shares restrain profits on D-Street


Market Overview

  • Nifty50: ▲ 0.07% → 25,953.85

  • Sensex: ▼ 0.05% → 84,233.64

After three consecutive sessions of gains (≈ 1.2% rally), markets largely paused, showing signs of short-term consolidation.

What drove the pause?

  • Optimism from the potential US–India trade deal had already fueled recent gains.

  • Focus shifted to:

    • Mixed Q3 earnings

    • Upcoming inflation data

    • Details of the trade agreement

Sectoral Trends

  • 12 of 16 sectoral indices ended higher

  • Strength seen in:

    • Auto stocks (Auto index ▲ 1.3%)

    • Healthcare stocks

    • Banking stocks

  • IT stocks lagged sharply

    • IT index ▼ 1.8%

Why IT stocks fell

  • Weak US retail sales data → raised concerns about a possible slowdown in the US economy.

  • Indian IT firms are heavily dependent on US revenue exposure, making the sector sensitive to US macro data.

  • Persistent worries about AI-led disruption continue to weigh on valuations.

IT Index Performance

  • 12.6% in 2025

  • 7.4% in 2026 (YTD)

Broader Market

  • Mid-cap & Small-cap indices: Mostly flat / marginally negative
    (Contrasts with earlier outperformance in the rally phase.)

Stock Highlights

  • Apollo Hospitals: ▲ 4% (Strong earnings)

  • Eicher Motors: ▲ 6.5% (Robust quarterly results)

  • State Bank of India (SBI): ▲ 3.4%

    • Up 11% in three sessions

    • Surpassed TCS in market capitalisation

Key Takeaways

  • Markets appear to be digesting recent gains rather than reversing.

  • Rotation into earnings-driven sectors (auto, healthcare, banks) visible.

  • Global cues + IT weakness capped index-level gains.

  • Improving FII flows are providing underlying support.


 

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