IT stocks drag Nifty lower as Financials, Aviation offset losses; markets open mildly positive

Markets opened on a mildly positive note on Wednesday, with the Nifty 50 rising 91.30 points or 0.38 per cent to 24,143.35 as of 9.18 am, after closing at 24,052.05 on Tuesday. The Sensex opened at 77,192.76, against a previous close of 77,054.94, an d was trading at 77,373.54, up 318.60 points or 0.41 per cent.

The session's gains were capped by broad-based selling in information technology stocks, with TCS leading losses on the Nifty 50, falling ₹50.60 or 1.76 per cent to ₹2,150.00 against a previous close of ₹2,200.60. Infosys dropped 1.49 per cent to ₹1,076.60, HCL Technologies fell 1.26 per cent to ₹1,152.00, Wipro shed 1.16 per cent to ₹175.08, and Tech Mahindra declined 1.13 per cent to ₹1,467.50, making IT the worst-performing sector in early trade.

On the gaining side, Shriram Finance was the top Nifty gainer, rising 1.92 per cent to ₹1,033.40. Bajaj Finance gained 1.68 per cent to ₹1,023.50, while HDFC Life climbed 1.31 per cent to ₹562.50. IndiGo rose 1.02 per cent to ₹5,160.00, and Asian Paints added 1.01 per cent to ₹2,667.70, providing broad-based support across financials, aviation, and consumer sectors.

The positive opening was in line with overnight cues. Sachin Gupta, VP – Research at Choice Broking, noted that "global cues remain broadly positive, with Wall Street and European markets ending firm overnight and Asian peers such as the Nikkei and Hang Seng also indicating a constructive tone in early trade." Gift Nifty had been trading at 24,045, up 30 points ahead of the open.

However, analysts flagged persistent headwinds. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to elevated crude oil prices as a key concern: "With Brent crude trading around $86, there are no positives that can lift the market higher in the near-term." He also flagged that "total uncertainty has become the new normal, rendering investment decisions extremely challenging" amid erratic policy signals from the United States.

Geopolitical tensions in the Middle East — where the United States and Iran have continued to exchange missile strikes — have kept crude prices elevated above $85 per barrel, posing risks to India's current account deficit and domestic inflation. India's CPI inflation rose to 4.38 per cent in June, while the monsoon deficit has widened to 18 per cent, adding to macroeconomic concerns.

On the global front, some relief came from softer-than-expected US inflation. Ponmudi R, CEO of Enrich Money, noted that "US consumer price inflation eased to 3.5 per cent in June, below market expectations of 3.8 per cent... reinforcing expectations that the Federal Reserve could adopt a less aggressive monetary policy stance in the coming months."

Technically, Gupta said the Nifty "continues to hold above the psychologically important 23,900 zone," with "selling pressure persisting on rallies towards 24,250." The index is in its fifth consecutive session of consolidation between 23,800 and 24,300. India VIX stood at 13.75, up 3.54 per cent, reflecting moderate but watchful volatility.

Bank Nifty, which had closed Tuesday at 57,462.30 — down 669.15 points or 1.15 per cent — was seen facing resistance at 58,000, with support around 57,200–57,000. Analysts said a sustained move above 58,000 would be needed to strengthen banking sector momentum.

Despite the near-term caution, Dr Vijayakumar offered measured optimism: "Q1 results of leading banks, NBFCs and auto stocks will be good. Digital platform companies are likely to report good growth numbers." He added that "the best strategy during totally uncertain and complex times like these is to remain invested and continuing to invest in stocks in growth sectors which are fairly valued.”