IT stocks emerged as the top performers on Monday, with the NIFTY IT index trading 1.06% higher at 28,010.35 levels, according to reports from The Economic Times. All 10 constituents of the index were in positive territory, marking a significant shift from recent sessions when the IT pack remained under selling pressure. Infosys was trading 0.63% higher, while Tech Mahindra surged 2.53% and Coforge gained 2.33%. Oracle Financial Services Software (OFSS) was trading over 3% higher, with LTM trading over 2% higher at ₹4,055.10 on the NSE. However, broader market sentiment remained weak as Indian markets opened sharply lower on Monday, with the Sensex falling 809 points or 1.08% to 74,428.65, while the Nifty slipped 229 points or 0.97% to trade below the 23,500 mark at 23,414 in early trade, as reported by Financial Express.
Despite navigating one of the most challenging environments in recent memory, India's top ten information technology companies listed on the Nifty IT index paid a combined dividend of ₹1 lakh crore in fiscal year 2026, marking a record high that rewarded shareholders, as reported by Moneycontrol.com. This bumper payout came against a backdrop of deepening fears that artificial intelligence will disrupt traditional software service models, weak earnings outlooks, and increasingly cautious client spending. The record dividend payout demonstrates the sector's resilience and ability to generate strong cash flows even amid challenging market conditions.
The IT sector's outperformance was primarily driven by the Indian rupee's decline to a new all-time low of 96.18 per US dollar on Monday, as reported by The Economic Times. This marks the fifth consecutive session of record lows, making it Asia's worst-performing currency this year. The rupee fell nearly 0.3% to 96.2275 per dollar, eclipsing its previous all-time low of 96.1350. Soaring global bond yields, fueled by elevated energy prices from the Iran war, have weakened investor confidence and sent the currency spiraling downward. Traders noted that the losses would have been steeper without likely dollar-selling intervention by the Reserve Bank of India, while Indian policymakers have deployed rare regulatory curbs including restrictions on most silver imports.
The rupee's weakness has created broader market pressures, with the 10-year bond yield rising 6 basis points to 7.12% and the benchmark Nifty 50 index slumping over 1%, according to The Economic Times. Overseas investors have net sold over $23.5 billion of local stocks and bonds since March, reflecting the challenging investment environment. Regional stocks across Asia have slumped as rising energy prices from the ongoing Middle East war have fanned inflation fears. Efforts to end the Iran war appeared to have stalled following a drone strike at a nuclear power plant in the United Arab Emirates, adding to geopolitical uncertainties.
