Indian Markets Open Lower As IT Stocks Bear The Brunt

Indian stock markets opened in the red on Tuesday, with IT stocks leading the losses as global AI trade showed signs of revival in the US.

At 9:30 AM, the Sensex dropped 159 points, or 0.19 per cent, to 85,407, while the Nifty fell 32 points, or 0.13 per cent, to 26,139.

Broad-cap indices displayed mixed trends, with the Nifty Midcap 100 down 0.18 per cent, whereas the Nifty Smallcap 100 gained 0.07 per cent.

Major gainers in the Nifty included ONGC, Tata Steel, and NTPC. On the other hand, IT and financial stocks, including TCS, Tech Mahindra, Max Healthcare, Asian Paints, and ICICI Bank, recorded losses.

Sectorally, IT led declines, down 1.21 per cent, while oil & gas and metal sectors rose around 0.43 per cent and 0.41 per cent respectively.

Analysts noted immediate resistance for Nifty at 26,300–26,350, with key support levels at 26,000–26,050. Market sentiment was influenced by positive domestic macro indicators and the revival of AI stocks in the US, which may delay the anticipated reversal in foreign institutional investor (FII) outflows.

Global Markets and External Factors

Asian markets showed moderate gains, supported by an AI-led rally in the US. China’s Shanghai Composite advanced 0.34 per cent, Shenzhen 0.65 per cent, Japan’s Nikkei 0.02 per cent, Hong Kong’s Hang Seng 0.33 per cent, and South Korea’s Kospi 0.45 per cent.

Wall Street closed mostly higher overnight, with Nasdaq up 0.52 per cent, S&P 500 0.64 per cent, and Dow 0.47 per cent.

Geopolitical tensions also influenced investor sentiment. Rising US-Venezuela tensions and delays in Russia-Ukraine peace talks, including the killing of a Russian army general in a bomb attack on Monday, supported crude oil prices and added a layer of uncertainty to market movements.

On Monday, FIIs sold equities worth ₹516 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹3,898 crore, reflecting mixed investor confidence amid global and domestic factors.

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