Despite Indian equities showing resilience, 20 shares in the NIFTY500 index are down over 30% year-to-date, according to data from Ace Equity. The NSE Nifty rose 26.5 points and the BSE Sensex gained 130.5 points on Wednesday, as reported by The Economic Times. Among the worst performers are ITC, Infosys, Wipro, TCS, RVNL, Patanjali Foods, Pine Labs, Latent View Analytics, Birlasoft, LTM, KPIT Technologies, Inox Wind, Swan Corp, Tata Elxsi, CE Info Systems, KEC International, Reliance Power, and Swiggy. Banking stocks rallied up to 2% on Wednesday, lifting the Nifty Bank index as investors positioned ahead of Q1 earnings from major private lenders.
IBM shares plunged about 25% on July 14 after the company unexpectedly warned that its second-quarter results would miss Wall Street estimates. The selloff wiped out roughly $70 billion in market value and marked the stock's steepest one-day decline on record, surpassing losses during the 1987 market crash. According to reports, IBM expects second-quarter revenue of about $17.2 billion, below analysts' expectations of nearly $17.9 billion. Adjusted earnings are projected at $2.93 per share, also missing estimates, after weaker-than-expected performance in its software and infrastructure businesses. Chief Executive Arvind Krishna explained that many enterprise customers are redirecting their technology budgets toward AI infrastructure such as servers, storage and memory chips, delaying or cancelling software purchases.
KPIT Technologies has provided guidance for Q1FY27, stating there is an expected decline of 1% in USD-reported revenues compared to Q1FY26. As reported by the company, this decline is primarily due to sudden actions by some European OEMs triggered by their recent profit warnings and adverse business outlook. The company added that operating profitability (EBITDA Margin) and the net profit margin for Q1FY27 would decline sequentially, proportionately higher than the revenue decline, since there is no window for cost optimisation during this short period. HCL Technologies shares dropped significantly on Tuesday following analyst target reductions after the company's first-quarter results, with most foreign brokerages trimming their price targets.
The broader market decline comes despite positive momentum from expectations of strong first-quarter earnings and hopes of de-escalation in the West Asia conflict. According to reports, the SENSEX dropped as much as 0.8% to touch an intraday low of 77,001.58 on July 14. The market's resilience contrasts sharply with the individual stock corrections, highlighting the divergent performance across different sectors and companies within the NIFTY500 index. PL Capital has raised its one-year Nifty 50 target to 27,019, implying over 12% upside, while warning that the escalating West Asia conflict and a potential super El Niño could fuel inflation and hurt growth.
