Indian shares recoup intraday losses as IT stocks shine
- The benchmark Nifty 50 rose 0.02% to 24,211, while the BSE Sensex added 0.06% to 77,616.4
Indian share benchmarks recovered from a near-1% drop, driven by surging IT stocks due to major partnerships and strong earnings, despite renewed Middle East conflict concerns.
- IT sector's rebound from major partnerships and strong earnings.
- Global market impact of Middle East conflict and AI stock valuations.
- India's emerging market appeal amidst global uncertainties.
Indian share benchmarks recovered from a near-1% drop on Monday, as IT stocks surged on the back of major partnerships and decent earnings offset concerns over renewed fighting in the Middle East.
The benchmark Nifty 50 rose 0.02% to 24,211, while the BSE Sensex added 0.06% to 77,616.4. They fell as much as 0.9% earlier in the session.
Eight of the 16 major sectors rose in India. The broader small-caps and mid-caps ended little changed.
IT stocks soared 3.6% to a one-month high following Tata Consultancy Services’ multi-million dollar deal with ABB, and LTM’s partnership with Anthropic to accelerate Claude adoption.
Sentiment in the sector had improved last week after TCS beat revenue expectations.
TCS and LTM jumped 5.4% and 2.2%, respectively, while HCLTech rose 4.9% ahead of its earnings later in the day.
“What we are seeing in the IT sector is more of trading and tactical calls in beaten-down stocks rather than a structural buy call,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
IT stocks are down nearly 23% so far in 2026, despite a 10.3% jump in July.
Global stocks fell, and government bond yields rose on Monday as investors grappled with concerns over the conflict and valuations in AI-related stocks.
U.S. and Iranian forces exchanged heavy missile and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.
South Korea’s benchmark stock index sank 7.6%, having already lost almost 8% last week, as leveraged bets on semiconductor shares came under pressure.
“The drawdown in AI-heavy markets clearly indicates that investors are churning money out of heavily bought-into markets
and looking at other emerging markets like India, which also benefits from easing of crude oil prices,“ said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.
Investors await India’s inflation data scheduled for release later today. Consumer inflation likely breached the central bank’s medium-term target of 4% in June for the first time in 16 months, according to a Reuters poll.
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