IT stocks defy weak market, Nifty Bank sinks and breadth turns negative

Indian equities ended lower on Monday, with the Nifty 50 falling 0.70% to 23,382.60 and the Sensex slipping 0.68% to 74,267.62. The Nifty Bank declined 1.10% to 53,643.10, while the Nifty IT index jumped 2.66% to 29,854.25, emerging as the day’s standout sector in an otherwise weak market.

The broader market also stayed under pressure. The Nifty 500 fell 0.97%, the Nifty Midcap 100 lost 1.45%, and the Nifty Smallcap 100 declined 0.88%. Market breadth remained poor, with the NSE advance-decline ratio at 1:2, indicating that losers far outnumbered gainers through the session. The market failed to hold onto early gains and finished near intraday lows.

Why markets weakened

Sentiment was weighed down by a combination of global and domestic concerns. Brent crude rose to about $94 a barrel, up nearly 3%, keeping oil prices elevated and renewing concerns about imported inflation. The move came amid continuing West Asia tensions, where military activity and diplomacy remained in focus and kept energy markets on edge.

Volatility also stayed elevated. The latest closing data showed India VIX at 16.54, up 2.20% on the day, reflecting caution ahead of macro and geopolitical developments. Global cues were mixed as well, with Dow futures not providing a strong risk-on signal, leaving domestic traders with little support from overseas markets. The combination of firmer crude, elevated volatility and weak breadth kept buyers defensive.

IT stocks outperform

IT was the only large sector to show sustained strength. Tech Mahindra rose 3.71%, Infosys climbed 3.67%, TCS gained 1.66%, Wipro added 1.11% and HCLTech advanced 0.87%. The move in IT helped cushion the indices from sharper losses in banks, consumption and autos.

The sector’s outperformance also stood out against a weak tape elsewhere. A stronger global tech mood and stock-specific buying supported the pack, even as domestic cyclicals came under pressure.

Broad-based weakness

Among losers, Hindustan Unilever fell 2.87%, Tata Consumer dropped 2.83%, ITC lost 2.65%, Shriram Finance declined 2.55%, M&M slipped 2.48% and NTPC fell 2.30%. UltraTech Cement , Kotak Bank , Bajaj Finance , Power Grid and L&T also closed lower. The weakness in auto stocks followed mixed May sales numbers, adding to the pressure on the sector.

Stock movers

On the gainers’ side, Coal India rose 3.35%, JSW Steel gained 1.77%, Hindalco advanced 1.36%, Indigo rose 1.25% and Tata Steel added 1.14%. The day’s biggest positive surprise, however, was the IT pack, where Tech Mahindra and Infosys led the Nifty higher.