IT gains help Sensex, Nifty end flat despite broader market weakness

IT stocks extended gains as easing crude oil prices and improved domestic outlook supported sentiment, though broader market breadth remained weak

Gains in Indian information technology majors offset losses elsewhere, and Indian equity benchmarks ended flat, a day after snapping their five-session losing streak.

 

The benchmark Sensex on Tuesday ended the session at 76,766, down 70 points, or 0.09 per cent. The Nifty, meanwhile, ended the session at 23,985, a decline of 11 points, or 0.04 per cent. The total market capitalisation of BSE-listed firms declined by ₹1.6 trillion to end the session at ₹479 trillion.

 

IT stocks rose, with the Nifty IT index up 3.32 per cent, as the sector's relatively limited exposure to artificial intelligence (AI) insulated it from a broader global sell-off. In the last three sessions, the Nifty IT index gained 6.6 per cent after Jefferies upgraded the sector from underweight to neutral. Analysts said the reversal of the AI trade could drive tactical upside in the sector, particularly after this year's large decline. On a year-to-date basis, the Nifty IT has declined by 20 per cent.

 

 

Brent crude fell 1.7 per cent to about $84.56 a barrel, declining 10 per cent in the last three sessions after the pause in military action between the United States and Iran reduced fears of an immediate disruption to global energy supplies.

 

Market breadth was weak, with 2,740 stocks declining and 1,528 advancing. More than a third of Sensex stocks declined. Hindustan Unilever declined 7 per cent, the biggest loser amongst the Sensex pack and the biggest drag on the index. Contributions to the index decline depend on the weightage of a particular constituent and its change on that day.

 

“The respite in crude oil prices provided relief to markets by easing concerns over inflation and input-cost pressures. However, persistent volatility in energy markets and heightened geopolitical risks could keep global bond yields elevated this year. India’s relative advantage under the revised US tariff framework further supported investor confidence. On the domestic front, improving monsoon conditions and moderately better Q1FY27 earnings have strengthened the growth outlook. Sectoral trends remained mixed, with IT stocks continuing to outperform, supported by attractive valuations,” said Vinod Nair, Head of Research at Geojit Investments.