Benchmarks remains under pressure despite strong IT rally

The key equity barometers trimmed their losses in early afternoon trade, but sentiment remained weak amid mixed global cues. Rising crude oil prices and elevated global bond yields continued to weigh on risk appetite.

The Nifty traded near the 23,350 level after recovering from the day's low of 23,311.55. The index remained under pressure despite strong gains in information technology stocks.

Global markets remained cautious ahead of the US Federal Reserve's policy decision. Investors were also assessing the impact of higher oil prices on inflation and interest rates.

At 12:25 IST, the S&P BSE Sensex was down 167.75 points, or 0.22%, at 74,614.01. The Nifty 50 index was down 67.65 points, or 0.29%, at 23,330.45.

 

In the broader market, the Nifty Midcap 100 index declined 0.99%. The Nifty Smallcap 100 index fell 1.34%.

On the NSE, 920 shares were trading in green, while 2,488 shares were trading in red. A total of 106 shares were unchanged.

Derivatives:

The NSE's India VIX, which gauges expected near-term market volatility, rose 4.13% to 12.79.

The Nifty 29 September 2026 futures traded at 23,369.20. This represented a premium of 38.75 points over the spot level of 23,330.45.

The Nifty option chain for the 29 September 2026 expiry showed maximum call open interest of 3,32,351 contracts at the 24,000 strike. Maximum put open interest stood at 2,53,736 contracts at the 23,000 strike.

Buzzing Index:

The Nifty IT index surged 3.74% to 30,004.40 as concerns over AI-driven disruption eased. Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and Elon Musk backed a slower pace of AI development.

The comments reduced concerns over rapid AI adoption disrupting traditional IT services. They also supported expectations of continued technology outsourcing, particularly in the US market.

HCL Technologies rose 6.07%, while Tata Consultancy Services gained 5.02%. Mphasis advanced 4.31%, followed by Infosys at 4.23%.

LTM gained 3.98%, while Tech Mahindra rose 3.92%. Wipro advanced 2.32%.

Persistent Systems and Oracle Financial Services Software gained 1.38% and 0.98%, respectively. Coforge declined 2.27%.

Stock in Spotlight:

Diamond Power Infrastructure was locked in a 5% upper circuit after receiving a letter of award from Adani Electricity Mumbai (AEML).

The contract is worth Rs 179.43 crore. It covers the supply of additional medium-voltage and low-voltage underground power cables.

The cables will be supplied for Mumbai's electricity distribution network.

Yash Highvoltage rose 2.33% after its US subsidiary YASH HV USA INC. entered into a 36-month representation agreement.

The subsidiary signed the agreement with Ensales Electrical Associates, Inc. The agreement covers sales representation, product promotion and utility approvals across 19 US territories.

The covered portfolio includes OIP transformer bushings up to 245 kV. It also includes RIP and RIS bushings up to 230 kV, available from 2027.

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