The Indian equity market indices resumed their downward trajectory and hit fresh intraday lows in afternoon trade, with SENSEX declining 262.48 points (0.35%) to 74,519.28 and NIFTY50 falling 102.50 points (0.44%) to 23,295.60 as of 13:26 IST. According to Business Standard, the Nifty traded below the 23,300 level even as information technology stocks recorded strong buying interest, but sentiment remained weak amid mixed global cues. Rising crude oil prices and elevated global bond yields continued to weigh on risk appetite, with the Nifty Midcap 100 index declining 1.30% and Nifty Smallcap 100 index falling 1.53%. Market breadth remained weak with 1,323 shares trading in green, 3,000 shares in red, and 267 unchanged on the BSE, while the NSE's India VIX rose 4.13% to 12.79, indicating increased volatility expectations.
IT stocks led the market rebound despite broader market weakness, with the Nifty IT index surging 3.74% to 30,004.40 as concerns over AI-driven disruption eased. As reported by Business Standard, HCL Technologies rose 4.99%, Infosys gained 3.42%, TCS advanced 3.41%, Tech Mahindra up 2.79%, and Tata Motors Passenger Vehicle up 2.03% among the top gainers. The strong performance came after chief executives of major AI companies called for a slower pace of AI development over the weekend, with Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and Elon Musk backed a slower pace of AI development. According to Live Mint, experts believe IT stocks are rising due to the AI-slowdown buzz in the global markets, with the AI-slowdown being a positive development for Indian IT and tech shares. The comments reduced concerns over rapid AI adoption disrupting traditional IT services and supported expectations of continued technology outsourcing, particularly in the US market.
The Nifty IT sector soared over 4% to lead gains, while Nifty Metal fell 0.58% as the only major sector to decline. According to The Hindu, Nifty FMCG gained 0.72% and Nifty Auto rose 0.31%, with media, energy and private banking indices also marginally higher. Nifty MidSmall IT & Telecom index rose nearly 2%, while Nifty Financial Services Ex-Bank and Nifty MidSmall Financial Services declined 0.52% and 0.5% respectively. Nifty Pharma fell 0.37%, with cement, healthcare, consumer durables and realty indices also trading lower. Among Nifty 50 stocks, Shriram Finance, Bharat Electronics, Grasim, Adani Enterprises and Titan were top losers which declined between nearly 1% and 3.69%. Kotak Mahindra Bank, InterGlobe Aviation and other stocks also traded lower.
Diamond Power Infrastructure was locked in 5% upper circuit after the company announced receiving a letter of award from Adani Electricity Mumbai (AEML) for a contract worth ₹179.43 crore. HeidelbergCement India fell 2.30% following the company's announcement of entering into a mine development and production agreement (MDPA) for a period of 50 years with the Department of Mineral Resources, Government of Madhya Pradesh, for the SukhaSatpara Limestone Block. Afcom Holdings tumbled 4.57% after signing a long-term Aviation Fuel Supply Agreement with Hindustan Petroleum Corporation (HPCL) for Jet A-1 aviation turbine fuel supply across HPCL's pan-India aviation fuelling network. Jubilant FoodWorks slipped 1.48% after the company announced that Virender Singh Sehrawat, executive vice president & head - integrated supply chain and senior management personnel (SMP) of the company, has resigned from the services of the company on 10 September 2026.
The positive opening came despite a weak global backdrop, with Wall Street closing lower overnight as the Dow Jones shed 0.29%, the S&P 500 fell 0.48%, and the Nasdaq dropped 0.56%. According to Business Standard, European equities slipped while Asian indices traded in a subdued manner on Tuesday after Wall Street ended lower overnight as investors weighed concerns over the pace of artificial intelligence development, rising oil prices and higher US Treasury yields. AI-related technology stocks remained under pressure after senior industry figures called for a slower pace of AI development, with the weakness particularly pronounced in semiconductor stocks. Markets were also unsettled by renewed concerns over Middle East energy supplies, with Brent crude around $106.96 a barrel following attacks on Saudi Arabian energy infrastructure. Investors are now focused on the Federal Reserve's meeting scheduled for this week, with markets pricing in roughly a 90% probability of a 25-basis-point rate hike, which would be the first increase since 2023. As per The Hindu BusinessLine, GIFT Nifty trading near 23,217 suggests a cautious opening for Wednesday's session, with analysts warning that rising US bond yields, Brent crude near $108 a barrel and escalating West Asia tensions could keep Indian equities under selling pressure.
