Indian benchmark indices extended gains on Wednesday, July 29, with Nifty rising 0.94% to 24,211 and Sensex climbing 1.01% to 77,541 as of 10 am, according to reports from NDTV Profit. This surge comes amid several positive cues including global market movements and sectoral rallies. Most sectors traded in the green, with gains led by IT sector up over 2.4%, followed by Metal and FMCG sectors, while Realty declined 0.46%. The broader indices also showed positive momentum, with Nifty Smallcap 250 up 0.81% and Midcap 150 rising 0.66%. As of latest trading data, Nifty IT index is trading at 25,074.55, giving a 15.33% return year-to-date, demonstrating the sector's strong performance trajectory.
Indian IT stocks surged for a third consecutive session, with Infosys, TCS, HCL Tech, Wipro, Coforge and Tech Mahindra gaining up to 5% as a sharp selloff in semiconductor stocks intensified amid growing investor concerns over Big Tech's massive AI spending, according to The Economic Times. The rally came despite a global tech selloff, with investors also awaiting the US Federal Reserve's policy decision. TCS shares gained 3.2% to ₹2,476 on the BSE, while Infosys rallied 4.1% to ₹1,152. HCL Tech rose 2.3% to ₹1,350, and Wipro edged 2.2% higher to ₹185. In the broader market, Coforge jumped 5% following a strong Q1 performance, while Persistent Systems advanced more than 3%. The Nifty IT index emerged as the top sectoral gainer at 2.47% as of 9:51 am, significantly outperforming the broader market where the Nifty 50 gained 0.93%.
Jefferies has turned neutral on the IT sector, citing positive foreign portfolio investor (FPI) feedback and potential tactical upside after a sharp correction, as reported by The Economic Times. The brokerage noted that FPI flows have turned positive, while economic and corporate data have also surprised on the upside. With IT services stocks bearing the brunt of AI-related concerns, Jefferies believes the pause in the AI trade could create room for a tactical recovery in the sector. The brokerage has closed its longstanding underweight stance on IT services by adding Infosys to its portfolio and increasing its weight in Coforge, taking its overall IT allocation to neutral. The move has been funded by trimming exposure to power, real estate, and hospitals, which remain its largest overweight positions.
Investors are tracking upcoming commentary and policy announcements from the Federal Reserve, which may not have changed interest rates yet but the bond market is already preparing for scenarios previously considered unlikely just weeks ago, as reported by NDTV Profit. The Federal Reserve is set to announce its latest monetary policy decision this week, with institutional investors paying sharply higher prices to insure against major upside shocks in US interest rates. According to CME FedWatch data, markets largely expect the central bank to keep interest rates unchanged, making the outcome unlikely to surprise investors. Activity in the interest-rate derivatives market suggests traders are no longer treating aggressive policy tightening as a remote possibility, even as opinions remain deeply divided over what the central bank will do.
Asian markets traded mixed on Wednesday, with gains in Hong Kong's Hang Seng (+1.37%), Australia's ASX 200 (+0.93%), New Zealand's NZX 50 (+0.72%), Singapore's STI (+0.57%) and Malaysia's FTSE Bursa Malaysia KLCI (+0.12%) offset by losses elsewhere, as reported by NDTV Profit. Japan's Nikkei 225 fell 2.77%, while South Korea's Kospi slumped 9.76%. Chinese equities were also lower, with the Shanghai Composite declining 0.53% and the Shenzhen Component shedding 0.43%. The rebound in Indian IT shares came despite continued weakness across Asian technology markets, with Asian equities extending their recent decline after a sharp selloff in South Korean chipmakers, reflecting investor concerns over elevated AI valuations, rising competitive intensity and heavy capital spending by global technology companies.
