BSE Cap Goods

Any policy shift under new Fed Chair likely to be measured and data-dependent rather than front-loaded, Expected earnings normalisation in FY27 may boost investor confidence, capital flows, Indian exporters set to become significantly more competitive in large American market, particularly across cotton and apparel categories

* Any policy shift under new Fed Chair likely to be measured and data-dependent rather than front-loaded
* Expected earnings normalisation in FY27 may boost investor confidence, capital flows
* Indian exporters set to become significantly more competitive in large American market, particularly across cotton and apparel categories

shorts/business/daily-voice-quest-s-rakesh-vyas-sees-fy27-earnings-normalisation-driving-fresh-capital-inflows

* Any policy shift under new Fed Chair likely to be measured and data-dependent rather than front-loaded
* Expected earnings normalisation in FY27 may boost investor confidence, capital flows
* Indian exporters set to become significantly more competitive in large American market, particularly across cotton and apparel categories

After two years of subdued performance, Rakesh Vyas of Quest Investment Managers believes FY27 is likely to witness a normalisation in corporate earnings, which should help restore investor confidence and improve capital flows.

FIIs have traditionally regarded India as a structural growth market, and the absence of robust earnings momentum over the past two years has weighed on capital inflows, he said in an interview with Moneycontrol.

Meanwhile, according to him, the government’s focus on stimulating domestic consumption is expected to improve capacity utilisation levels, which, in turn, could catalyse a meaningful pickup in private capital expenditure over the next 12–18 months.

Do you see a significant increase in FDI and technology transfer, especially after the India–US interim trade agreement?

The recent India–US interim trade agreement is expected to bring greater tariff stability and ease trade frictions, thereby helping revive both FII and FDI interest in India, particularly across sectors such as electronics manufacturing, IT services, and consumer goods.

In addition, the Union Budget’s announcement of a long-term tax holiday—extending up to 2047—for foreign companies leveraging India-based data centers to serve global clients should further catalyse investments in the data centre ecosystem and enable meaningful technology transfer. The agreement also contemplates higher Indian procurement of advanced electronics, ICT components, GPUs, and data-centre equipment, which would enhance domestic capabilities and strengthen the broader technology and manufacturing value chain.

Do you believe electronics and textiles will be high-growth areas going ahead?

With the US lowering reciprocal tariffs on Indian textiles and garments to around 18%, Indian exporters are set to become significantly more competitive in the large American market, particularly across cotton and apparel categories, which could translate into higher export volumes.

The tariff reduction also enhances the relative competitiveness of Indian electronics manufacturers compared with other Asian production hubs. This should support EMS providers in expanding capacity, increasing localisation, and strengthening integration into global value chains, thereby improving margins and boosting exports.

Overall, these developments position textiles, apparel, and electronics as key growth segments for Indian manufacturers to steadily gain market share in the US.

Do you think India’s relatively lower exposure to semiconductors and AI is a major concern for some foreign investors?

The strong rally in these segments over the past two years has underscored the limited availability of adequate investment opportunities in this space within India. However, recent policy measures — including the government’s announcement of long-term tax holidays for data centre–related investments and ongoing incentive schemes to promote domestic semiconductor manufacturing — are expected to create meaningful opportunities over the medium term.

Is a recovery in earnings and the ability to maintain healthy earnings growth a key factor in bringing FIIs back to the market?

FIIs have traditionally regarded India as a structural growth market, and the absence of robust earnings momentum over the past two years has weighed on capital inflows. Geopolitical uncertainties, along with delays in finalising a US–India trade agreement, have further compounded these concerns and kept flows subdued.

However, India has been proactively pursuing trade partnerships with major economies, which should improve market access and enhance the global competitiveness of domestic companies, creating long-term growth opportunities. With corporate earnings expected to normalise from FY27 onward, we believe FIIs are likely to regain confidence and view India once again as an attractive investment destination.

Do you expect interest rates in the US to be reduced gradually, especially after the new Fed Chair takes charge?

Given the continued strength in US macroeconomic indicators and a resilient labour market, the likelihood of the Federal Reserve undertaking sharp or aggressive rate cuts appears limited. However, in the near term, a modest and gradual easing—such as a 25 basis point reduction—cannot be ruled out, particularly if inflation trends remain contained.

Overall, any policy shift under the new Fed Chair is likely to be measured and data-dependent rather than front-loaded.

Which sectors would you like to increase exposure to, particularly in light of recent global and domestic developments?

Supported by India’s trade agreements with major global economies, export-oriented sectors such as electronics, textiles, pharmaceuticals, and chemicals are well positioned to benefit from improved market access and sustained long-term growth opportunities.

At the same time, the government’s focus on stimulating domestic consumption is expected to enhance capacity utilisation levels, which should, in turn, catalyse a meaningful pickup in private capital expenditure over the next 12–18 months.

Additionally, India’s inherent labour cost advantage makes it an attractive destination for labour-intensive industries worldwide, encouraging greater outsourcing and strengthening its role as a competitive global manufacturing and services hub.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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Daily Voice: Quest's Rakesh Vyas sees FY27 earnings normalisation driving fresh capital inflows

The government’s focus on stimulating domestic consumption is expected to enhance capacity utilisation levels, which should, in turn, catalyse a meaningful pickup in private capital expenditure over the next 12–18 months, said Rakesh Vyas.

After two years of subdued performance, Rakesh Vyas of Quest Investment Managers believes FY27 is likely to witness a normalisation in corporate earnings, which should help restore investor confidence and improve capital flows.

FIIs have traditionally regarded India as a structural growth market, and the absence of robust earnings momentum over the past two years has weighed on capital inflows, he said in an interview with Moneycontrol.

Meanwhile, according to him, the government’s focus on stimulating domestic consumption is expected to improve capacity utilisation levels, which, in turn, could catalyse a meaningful pickup in private capital expenditure over the next 12–18 months.

Do you see a significant increase in FDI and technology transfer, especially after the India–US interim trade agreement?

The recent India–US interim trade agreement is expected to bring greater tariff stability and ease trade frictions, thereby helping revive both FII and FDI interest in India, particularly across sectors such as electronics manufacturing, IT services, and consumer goods.

In addition, the Union Budget’s announcement of a long-term tax holiday—extending up to 2047—for foreign companies leveraging India-based data centers to serve global clients should further catalyse investments in the data centre ecosystem and enable meaningful technology transfer. The agreement also contemplates higher Indian procurement of advanced electronics, ICT components, GPUs, and data-centre equipment, which would enhance domestic capabilities and strengthen the broader technology and manufacturing value chain.

Do you believe electronics and textiles will be high-growth areas going ahead?

With the US lowering reciprocal tariffs on Indian textiles and garments to around 18%, Indian exporters are set to become significantly more competitive in the large American market, particularly across cotton and apparel categories, which could translate into higher export volumes.

The tariff reduction also enhances the relative competitiveness of Indian electronics manufacturers compared with other Asian production hubs. This should support EMS providers in expanding capacity, increasing localisation, and strengthening integration into global value chains, thereby improving margins and boosting exports.

Overall, these developments position textiles, apparel, and electronics as key growth segments for Indian manufacturers to steadily gain market share in the US.

Do you think India’s relatively lower exposure to semiconductors and AI is a major concern for some foreign investors?

The strong rally in these segments over the past two years has underscored the limited availability of adequate investment opportunities in this space within India. However, recent policy measures — including the government’s announcement of long-term tax holidays for data centre–related investments and ongoing incentive schemes to promote domestic semiconductor manufacturing — are expected to create meaningful opportunities over the medium term.

Is a recovery in earnings and the ability to maintain healthy earnings growth a key factor in bringing FIIs back to the market?

FIIs have traditionally regarded India as a structural growth market, and the absence of robust earnings momentum over the past two years has weighed on capital inflows. Geopolitical uncertainties, along with delays in finalising a US–India trade agreement, have further compounded these concerns and kept flows subdued.

However, India has been proactively pursuing trade partnerships with major economies, which should improve market access and enhance the global competitiveness of domestic companies, creating long-term growth opportunities. With corporate earnings expected to normalise from FY27 onward, we believe FIIs are likely to regain confidence and view India once again as an attractive investment destination.

Do you expect interest rates in the US to be reduced gradually, especially after the new Fed Chair takes charge?

Given the continued strength in US macroeconomic indicators and a resilient labour market, the likelihood of the Federal Reserve undertaking sharp or aggressive rate cuts appears limited. However, in the near term, a modest and gradual easing—such as a 25 basis point reduction—cannot be ruled out, particularly if inflation trends remain contained.

Overall, any policy shift under the new Fed Chair is likely to be measured and data-dependent rather than front-loaded.

Which sectors would you like to increase exposure to, particularly in light of recent global and domestic developments?

Supported by India’s trade agreements with major global economies, export-oriented sectors such as electronics, textiles, pharmaceuticals, and chemicals are well positioned to benefit from improved market access and sustained long-term growth opportunities.

At the same time, the government’s focus on stimulating domestic consumption is expected to enhance capacity utilisation levels, which should, in turn, catalyse a meaningful pickup in private capital expenditure over the next 12–18 months.

Additionally, India’s inherent labour cost advantage makes it an attractive destination for labour-intensive industries worldwide, encouraging greater outsourcing and strengthening its role as a competitive global manufacturing and services hub.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Indian markets ended lower as IT stocks fell to a 10-month low, IT index fell 5 percent; Infosys, TCS, Wipro among major losers, Over 130 stocks hit 52-week highs, while 100+ stocks touched 52-week lows

* Indian markets ended lower as IT stocks fell to a 10-month low
* IT index fell 5 percent; Infosys, TCS, Wipro among major losers
* Over 130 stocks hit 52-week highs, while 100+ stocks touched 52-week lows

Indian equity markets fell on February 12, ending a four-day winning streak, as IT stocks dropped amid AI concerns. Nifty closed at 25,807.20, Sensex at 83,674.92. Most sectors declined, with IT index hitting a 10-month low and shedding 5%.

shorts/business/taking-stock-further-it-sell-off-drags-market-nifty-at-25-800-sensex-down-559-pts

* Indian markets ended lower as IT stocks fell to a 10-month low
* IT index fell 5 percent; Infosys, TCS, Wipro among major losers
* Over 130 stocks hit 52-week highs, while 100+ stocks touched 52-week lows

Amid fresh concerns over the impact of artificial intelligence on IT stocks, Indian equity markets ended lower on February 12, with the Nifty falling at 25,750 mark and snapping a four-day winning streak.

After witnessing a 7 percent decline in the previous week, IT stocks remained under pressure, falling another 6 percent so far this week and dragging the Nifty IT index to a 10-month low.

At close, the Sensex was down 558.72 points or 0.66 percent at 83,674.92, and the Nifty was down 146.65 points or 0.57 percent at 25,807.20.

Broader indices performed in line with the benchmarks, with the Nifty Midcap and Nifty Smallcap indices declining 0.5 percent each.

Also Read - <a href="https://www.moneycontrol.com/news/business/markets/bullish-on-capital-markets-theme-despite-stt-hike-says-groww-s-varun-gupta-13823964.html">Bullish on capital markets theme despite STT hike, says Groww's Varun Gupta</a>

Bajaj Finance, Shriram Finance, Eicher Motors, ICICI Bank, Trent were among major gainers on the Nifty, while losers were Infosys, TCS, Tech Mahindra, HCL Technologies and Wipro.

Among sectors, except Consumer Durables (up 0.4%), all other indices ended in the red with IT index sheds 5% and oil &amp; gas, media, realty down 1% each.

Also Read - <a href="https://www.moneycontrol.com/news/business/personal-finance/share-buyback-rules-before-april-2026-entire-payout-taxed-at-slab-rate-not-capital-gains-13823886.html">Share buyback rules before April 2026: Entire payout taxed at slab rate, not capital gains</a>

In stock specific actions, Lenskart Solutions share price rose 13% as Q3 profit rises 71-fold, LG Electronics India shares declined 3% amid weak Q3 earnings, Neogen Chemicals share price slipped 1% as profit down 63%, Kernex Microsystems India share price down 4% despite order win worth Rs 411.17 crore, Amara Raja Energy shares fell 5% after profit down 53%, Garware Technical Fibres shares added 2% on better Q3 earnings, Hikal share price rose 10% despite posting losses in Q3.

Also Read - <a href="https://www.moneycontrol.com/news/business/markets/why-indian-spinning-stocks-could-feel-the-heat-from-us-tariff-relief-for-bangladesh-13824794.html">Why Indian spinning stocks could feel the heat from US tariff relief for Bangladesh</a>

More than 130 stocks touched their 52-week highs, including Kirloskar Oil, Shriram Finance, Eicher Motors, Voltas, Max Financial, Indus Towers, Jindal Steel, SBI, APL Apollo, L&amp;T, Astral, ONGC, Bajaj Auto, Hitachi Energy, SAIL, JSW Steel, NTPC, 3M India, among others. <a href="https://www.moneycontrol.com/stocks/market-stats/52-week-high-bse/?indexName=BSE%2520500&amp;id=12">Click to View More</a>

More than 100 stocks touched their 52-week low, including Sonata Software, KPIT Technologies, Oracle Financial Services, Hexaware Technologies, TCS, Poly Medicure, Newgen Software, Mastek, Wipro, Cyient, Firstsource Solutions, IGL, Happiest Minds, Clean Science, Abbott India, among others. <a href="https://www.moneycontrol.com/stocks/market-stats/52-week-low-bse/?indexName=BSE%2520500&amp;id=12">Click to View More</a>

Outlook for February 13

Rupak De, Senior Technical Analyst at LKP Securities

The index, following a weak opening, remained under selling pressure. However, the selling momentum was not strong, resulting in a largely lackluster session. The index traded within the 25,750–25,850 range throughout the day.

Despite the correction, it managed to close above the 20DMA, keeping the possibility of a recovery intact. On the upside, resistance continues to be placed at 26,000. On the downside, support is seen in the 25,750/25,500.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

The domestic equity market witnessed a weak start on Thursday, with the Nifty opening sharply lower amid a broad sell-off in IT stocks. Persistent concerns over the potential impact of fast-growing AI start ups on traditional IT service companies triggered heavy pressure across the IT stocks. As a result, the Nifty IT index slumped 5.51%, dragging the benchmark indices lower through the session.

Despite the initial gap down move, the Nifty managed to stabilise somewhat but eventually closed near the 25800 mark, down 0.57%, forming a bearish candle with a minor lower shadow on the daily chart. The candle pattern reflects intraday attempts at recovery, although overall sentiment remained cautious.

From a technical standpoint, the benchmark index is still holding above its key moving averages, suggesting that the broader uptrend structure remains intact. However, momentum indicators point towards sideways consolidation in the near term, indicating a potential pause before the next directional move.

Going ahead, for Nifty, the 50-day EMA zone of 25700-25670 will act as important support for the index. On the upside, the zone of 25900-25940 will act as an immediate hurdle for the index. Any sustainable move above 25940 will lead to a further upside rally up to the 26100 level in the short term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Taking Stock: Further IT sell-off drags market; Nifty at 25,800, Sensex down 559 pts

Amid fresh concerns over the impact of artificial intelligence on IT stocks, Indian equity markets ended lower on February 12, with the Nifty falling at 25,750 mark and snapping a four-day winning streak.

After witnessing a 7 percent decline in the previous week, IT stocks remained under pressure, falling another 6 percent so far this week and dragging the Nifty IT index to a 10-month low.

At close, the Sensex was down 558.72 points or 0.66 percent at 83,674.92, and the Nifty was down 146.65 points or 0.57 percent at 25,807.20.

Broader indices performed in line with the benchmarks, with the Nifty Midcap and Nifty Smallcap indices declining 0.5 percent each.

Also Read - Bullish on capital markets theme despite STT hike, says Groww's Varun Gupta

Bajaj Finance, Shriram Finance, Eicher Motors, ICICI Bank, Trent were among major gainers on the Nifty, while losers were Infosys, TCS, Tech Mahindra, HCL Technologies and Wipro.

Among sectors, except Consumer Durables (up 0.4%), all other indices ended in the red with IT index sheds 5% and oil &amp;amp; gas, media, realty down 1% each.

Also Read - Share buyback rules before April 2026: Entire payout taxed at slab rate, not capital gains

In stock specific actions, Lenskart Solutions share price rose 13% as Q3 profit rises 71-fold, LG Electronics India shares declined 3% amid weak Q3 earnings, Neogen Chemicals share price slipped 1% as profit down 63%, Kernex Microsystems India share price down 4% despite order win worth Rs 411.17 crore, Amara Raja Energy shares fell 5% after profit down 53%, Garware Technical Fibres shares added 2% on better Q3 earnings, Hikal share price rose 10% despite posting losses in Q3.

Also Read - Why Indian spinning stocks could feel the heat from US tariff relief for Bangladesh

More than 130 stocks touched their 52-week highs, including Kirloskar Oil, Shriram Finance, Eicher Motors, Voltas, Max Financial, Indus Towers, Jindal Steel, SBI, APL Apollo, L&amp;amp;T, Astral, ONGC, Bajaj Auto, Hitachi Energy, SAIL, JSW Steel, NTPC, 3M India, among others. Click to View More

More than 100 stocks touched their 52-week low, including Sonata Software, KPIT Technologies, Oracle Financial Services, Hexaware Technologies, TCS, Poly Medicure, Newgen Software, Mastek, Wipro, Cyient, Firstsource Solutions, IGL, Happiest Minds, Clean Science, Abbott India, among others. Click to View More

Outlook for February 13

Rupak De, Senior Technical Analyst at LKP Securities

The index, following a weak opening, remained under selling pressure. However, the selling momentum was not strong, resulting in a largely lackluster session. The index traded within the 25,750–25,850 range throughout the day.

Despite the correction, it managed to close above the 20DMA, keeping the possibility of a recovery intact. On the upside, resistance continues to be placed at 26,000. On the downside, support is seen in the 25,750/25,500.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

The domestic equity market witnessed a weak start on Thursday, with the Nifty opening sharply lower amid a broad sell-off in IT stocks. Persistent concerns over the potential impact of fast-growing AI start ups on traditional IT service companies triggered heavy pressure across the IT stocks. As a result, the Nifty IT index slumped 5.51%, dragging the benchmark indices lower through the session.

Despite the initial gap down move, the Nifty managed to stabilise somewhat but eventually closed near the 25800 mark, down 0.57%, forming a bearish candle with a minor lower shadow on the daily chart. The candle pattern reflects intraday attempts at recovery, although overall sentiment remained cautious.

From a technical standpoint, the benchmark index is still holding above its key moving averages, suggesting that the broader uptrend structure remains intact. However, momentum indicators point towards sideways consolidation in the near term, indicating a potential pause before the next directional move.

Going ahead, for Nifty, the 50-day EMA zone of 25700-25670 will act as important support for the index. On the upside, the zone of 25900-25940 will act as an immediate hurdle for the index. Any sustainable move above 25940 will lead to a further upside rally up to the 26100 level in the short term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

AI Jitters Sink IT Index to 10-Month Low; Nifty Clocks Triple-Digit Loss | Closing Bell Live

Sensex and Nifty fell, dragged by IT shares amid weak US market cues., Nifty IT index fell 4%, with Tech Mahindra, Infosys, Wipro among top losers., Oil prices rose, adding concerns for India due to inflation and trade deficit.

* Sensex and Nifty fell, dragged by IT shares amid weak US market cues.
* Nifty IT index fell 4%, with Tech Mahindra, Infosys, Wipro among top losers.
* Oil prices rose, adding concerns for India due to inflation and trade deficit.

Sensex and Nifty fell as IT stocks dropped sharply, tracking US market losses and AI disruption concerns. Nifty IT index declined over 4%. Rising crude prices and weak global cues also weighed on sentiment. Technical outlook shows support near 25,700-25,780.

shorts/business/sensex-down-400-pts-nifty-below-25-850-selling-in-it-shares-among-key-factors-behind-market-decline

* Sensex and Nifty fell, dragged by IT shares amid weak US market cues.
* Nifty IT index fell 4%, with Tech Mahindra, Infosys, Wipro among top losers.
* Oil prices rose, adding concerns for India due to inflation and trade deficit.

The benchmark equity indices Sensex and Nifty declined on Thursday, dragged down by heavy selling in IT shares amid weak cues from US markets.

The Sensex settled 558.72 points or 0.66 percent lower at 83,674.92, while the broader Nifty settled at 25,807.20, down 146.65 points or 0.57 percent.

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/techmahindra/TM4" target="_blank">Tech Mahindra</a>, Infosys and Wipro were among the major laggards in the Nifty50 pack, declining up to 5 percent, while <a href="https://www.moneycontrol.com/india/stockpricequote/finance-nbfc/bajajfinance/BAF" target="_blank">Bajaj Finance</a> and State Bank of India rose up to 2 percent. Market breadth was negative as about 1468 shares advanced, 2011 shares declined and 175 shares unchanged.
<h3>Key factors behind market decline</h3>
1) Selling in IT shares: Shares of Indian IT firms fell sharply, tracking losses in their Wall Street peers after better-than-expected US jobs data for January lowered expectations of an early rate cut by the US Federal Reserve. Concerns over artificial intelligence-led disruptions also weighed on sentiment.

The <a href="https://www.moneycontrol.com/news/business/markets/infosys-tcs-techm-other-it-stocks-tumble-up-to-5-on-fresh-ai-concerns-after-us-jobs-data-13824774.html" target="_blank">Nifty IT index</a> declined more than 4 percent, emerging as the top sectoral loser.

After losing 12.6 percent in 2025, the index has declined about 11 percent so far in 2026 amid concerns that AI-driven changes could impact earnings of software services companies.

"It’s a mix of knee-jerk reaction and concerns over real threat to IT," Vinit Bolinjkar, Head of Research at Ventura Securities told Reuters. "AI automation targets labour-heavy models at top Indian IT firms, slashing billable hours and headcount," he added.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said tech stocks are unlikely to recover soon following sharp declines in the ADRs of leading Indian IT companies in the US.

"The latest US jobs data indicating addition of 1,30,000 jobs last month and unemployment falling to 4.3 percent points to the possibility of no rate cuts by the Fed in the near term. In India, too, it appears that the rate-cutting cycle is over since growth is good and inflation is expected to inch back to the RBI’s long-term target by the end of FY27," Vijayakumar said.

2) Crude rises: Oil prices edged higher amid concerns over escalating tensions between the US and Iran. Brent crude, the global oil benchmark, rose 0.46 percent to USD 69.72 per barrel. Higher crude prices are seen as negative for India, which is a major importer of oil, as they can widen the trade deficit and add to inflationary pressures.
<h3><a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-hints-a-firm-opening-us-markets-flat-asia-rises-liveblog-13824246.html" target="_blank">Stock Market LIVE Updates</a></h3>
3) Weak global cues: In Asia, Hong Kong’s Hang Seng index was trading in the red. US markets had closed lower on Wednesday.
<h3>Technical outlook</h3>
The Nifty continues to hold its uptrend, trading above key moving averages. Immediate resistance is seen near the 26,000 level. A move above this could push the index towards its record high of 26,373. On the downside, the 25,700-25,780 zone is expected to offer support, said Devarsh Vakil, Head of Prime Research, HDFC Securities.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

Sensex settles 550 pts lower, Nifty ends near 25,800: IT sell-off among key factors behind market decline

Sensex news today: Sensex settles 550 pts lower, Nifty ends near 25,800: IT sell-off among key factors behind market decline

The benchmark equity indices Sensex and Nifty declined on Thursday, dragged down by heavy selling in IT shares amid weak cues from US markets.

The Sensex settled 558.72 points or 0.66 percent lower at 83,674.92, while the broader Nifty settled at 25,807.20, down 146.65 points or 0.57 percent.

Tech Mahindra, Infosys and Wipro were among the major laggards in the Nifty50 pack, declining up to 5 percent, while Bajaj Finance and State Bank of India rose up to 2 percent. Market breadth was negative as about 1468 shares advanced, 2011 shares declined and 175 shares unchanged.
Key factors behind market decline
1) Selling in IT shares: Shares of Indian IT firms fell sharply, tracking losses in their Wall Street peers after better-than-expected US jobs data for January lowered expectations of an early rate cut by the US Federal Reserve. Concerns over artificial intelligence-led disruptions also weighed on sentiment.

The Nifty IT index declined more than 4 percent, emerging as the top sectoral loser.

After losing 12.6 percent in 2025, the index has declined about 11 percent so far in 2026 amid concerns that AI-driven changes could impact earnings of software services companies.

&quot;It’s a mix of knee-jerk reaction and concerns over real threat to IT,&quot; Vinit Bolinjkar, Head of Research at Ventura Securities told Reuters. &quot;AI automation targets labour-heavy models at top Indian IT firms, slashing billable hours and headcount,&quot; he added.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said tech stocks are unlikely to recover soon following sharp declines in the ADRs of leading Indian IT companies in the US.

&quot;The latest US jobs data indicating addition of 1,30,000 jobs last month and unemployment falling to 4.3 percent points to the possibility of no rate cuts by the Fed in the near term. In India, too, it appears that the rate-cutting cycle is over since growth is good and inflation is expected to inch back to the RBI’s long-term target by the end of FY27,&quot; Vijayakumar said.

2) Crude rises: Oil prices edged higher amid concerns over escalating tensions between the US and Iran. Brent crude, the global oil benchmark, rose 0.46 percent to USD 69.72 per barrel. Higher crude prices are seen as negative for India, which is a major importer of oil, as they can widen the trade deficit and add to inflationary pressures.
Stock Market LIVE Updates
3) Weak global cues: In Asia, Hong Kong’s Hang Seng index was trading in the red. US markets had closed lower on Wednesday.
Technical outlook
The Nifty continues to hold its uptrend, trading above key moving averages. Immediate resistance is seen near the 26,000 level. A move above this could push the index towards its record high of 26,373. On the downside, the 25,700-25,780 zone is expected to offer support, said Devarsh Vakil, Head of Prime Research, HDFC Securities.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Nifty losing momentum at highs, final set of earnings to drive action. IT stocks in focus

9 out of 18 years BSE CAP GOODS has given positive returns in February.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	69,242.64	69,439.96	69,703.55	68,979.05	68,781.73	68,518.14	68,320.82
Fibonacci	69,155.11	69,263.89	69,439.96	68,979.05	68,802.98	68,694.20	68,518.14
Camarilla	69,087.58	69,129.83	69,172.08	68,979.05	69,003.08	68,960.83	68,918.58

INDEX CONTRIBUTION - BSE Cap Goods

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