Nifty trades with limited losses as IT stocks drag; global tensions weigh on market sentiment

The benchmark indices traded with limited losses in the mid-afternoon session, as selling pressure in IT stocks intensified further. The Nifty continued to trade below the 25,100 mark. Disappointing earnings from major IT companies dampened investor sentiment on Dalal Street.

Global cues further dragged sentiment. The White House?s announcement that U.S. President Donald Trump will visit the Federal Reserve on Thursday ? an unexpected move ? has intensified tensions with Fed Chair Jerome Powell, creating uncertainty in global markets.

Adding to the pessimism, there was no progress on the interim trade deal between India and the U.S. ahead of Washington?s 1 August deadline. According to media reports, negotiations between the countries have stalled over tariff reductions on key agricultural and dairy products.

At 14:27 IST, the S&P BSE Sensex was down 502.07 points or 0.61% to 82,224.57, while the Nifty 50 fell 142.35 points or 0.56% to 25,077.55.

In the broader market, the S&P BSE Mid-Cap index declined 0.47%, and the S&P BSE Small-Cap index was down 0.46%.

Market breadth was negative, with more stocks declining than advancing. On the BSE, 1,528 stocks declined, 2,456 advanced, and 173 remained unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.22% to 6.326 from the previous close of 6.312.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.3900 compared with its close of 86.4125 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement declined 0.73% to Rs 98,689.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 98.09.

The United States 10-year bond yield rose 0.16% to 4.396.

In the commodities market, Brent crude for September 2025 settlement gained 55 cents or 0.80% to $69.06 a barrel.

Buzzing Index:

The Nifty IT index fell 2.18% to 36,145. The index shed .25% in the previous trading sessions.

Tech Mahindra (down 2.8%), Mphasis (down 2.76%) and LTIMindtree (down 1.79%), HCL Technologies (down 1.62%), Infosys (down 1.53%), Tata Consultancy Services (down 0.98%) declined.

On the other hand, Oracle Financial Services Software (up 1.73%), Wipro (up 0.04%) added.

Coforge tumbled 8.36%. The company has reported 4.8% decline in consolidated net profit (continuing business) to Rs 247.2 crore despite an 8.2% increase in revenue to Rs 3,689 crore in Q1 FY26 as compared with Q4 FY25.

Coforge?s order intake for the quarter $507 million. The executable order book over next twelve months at $1.55 billion, a 46.9% YoY increase. The company signed 5 large deals in Q1 FY26 across North America, UK, and APAC.

Persistent System slumped 7.1%. The IT firm has reported 7.37% jump in consolidated net profit to Rs 424.94 crore on 2.82% increase in revenue from operations to Rs 3,333.59 crore in Q1 FY26 over Q1 FY25. The order booking for the quarter ended on 30th June 2025, was at $520.8 million in total contract value (TCV) and at $385.3 million in annual contract value (ACV) terms.

Stocks in Spotlight:

Bajaj Steel Industries dropped 5.64%. The company?s consolidated net profit plunged 78.93% to Rs 7.40 crore in Q1 FY26 as against Rs 35.13 crore posted in Q1 FY25. Revenue from operations declined 23.74% YoY to Rs 107.53 crore for the quarter ended 30 June 2025.

Zydus Lifesciences informed that it has received tentative approval from the United States Food and Drug Administration (USFDA) for Ibrutinib tablets. The tablets had annual sales of $2,148.9 million in the United States (IQVIA MAT May 2025).

Mukand zoomed 8.63% after the company said that it has executed an 'agreement for sale? for selling a land parcel located at Kalwe and Dighe villages in Thane district for a total consideration of Rs 673 crore.

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