The SENSEX and NIFTY50 opened on a flat note on Friday, July 31, with the Sensex starting at 77,998.66 against its previous close of 77,928.15, trading at 77,910.33, down 0.02 per cent, while the Nifty50 opened at 24,361.45 against its previous close of 24,317.15, trading at 24,335.35, up 0.07 per cent, as of 9.21 am on July 31, 2026. According to The Hindu BusinessLine, investors focused on IT stocks dragging down benchmark gains during the opening session, even as global markets showed strong performance overnight. The muted start reflects cautious sentiment among market participants as they assess the impact of technology sector performance on broader market movements.
Information technology stocks were the session's worst performers, with IT stocks declining as much as 4.5% after a string of strong earnings from global AI-focused companies renewed confidence in artificial intelligence spending and cloud demand, as reported by The Economic Times. TCS, India's largest IT company, declined over 4% to ₹2,330 on the BSE, while Infosys shares also dipped over 4% to ₹1,107. HCL Tech plunged 4.5% to ₹1,293, Wipro declined 3.3% to ₹180 per share, and Tech Mahindra traded 3.5% lower at ₹1,610. Midcap IT stocks Coforge and Persistent Systems declined up to 3%. The selling in IT counters came even as Wall Street closed sharply higher overnight — the Nasdaq gaining 2.8% to close at 25,122.18, snapping a six-session losing streak, the Dow Jones gaining 613.92 points to finish at 52,208.06, and the S&P 500 advancing 1.7% to 7,437.63. As per The Economic Times, the development comes at a time when the Indian IT sector is already facing multiple headwinds including subdued discretionary demand, slower deal closures and concerns that AI-driven automation could reduce demand for traditional IT services.
Despite the overall flat opening, Bajaj Finance emerged as the top gainer, rising over 3.5% following strong quarterly earnings that prompted brokerages to raise target prices. As per The Hindu BusinessLine, Bajaj Finance was the top gainer on the Sensex, rising over 3.5% after brokerages including Citi, Jefferies and Morgan Stanley raised their target prices after the lender delivered strong loan growth, resilient margins and improving asset quality. Bajaj Finserv rose 3.08 per cent, trading at ₹1,968.20 against a previous close of ₹1,909.40, after opening at ₹1,932. Shriram Finance added 1.78 per cent, trading at ₹1,045.50 from a previous close of ₹1,027.20. On the sectoral front, Mahindra & Mahindra advanced 1.78 per cent, trading at ₹3,342 against a previous close of ₹3,283.70, while Grasim Industries rose 0.91 per cent to ₹3,133.20 from ₹3,104.80. The strong performance of financial sector stocks provided significant support to the benchmark indices despite the drag from IT stocks.
The selling in IT counters contrasted sharply with the global tech rally that extended into Asian markets on Friday, as reported by The Hindu BusinessLine. South Korea's Kospi surged more than 17%, rebounding sharply after a three-day rout, while Japan's Nikkei 225 soared over 6%. Australia's S&P/ASX 200 gained 0.89%, lifting the broader MSCI Asia Pacific Index higher. GIFT Nifty futures were hovering near the 24,420 mark before the open, up 57 points, pointing to a firm start. Foreign Portfolio Investors turned net buyers of domestic equities in the previous session, purchasing over ₹3,600 crore despite uncertain geopolitical conditions, with FIIs cumulatively purchasing equities worth ₹7,360 crore over the last three days. As per The Economic Times, the positive momentum spread to Asia, where South Korea's Kospi rallied 17% as Samsung shares surged more than 21% and SK Hynix soared over 26% after both companies reported strong quarterly results. Samsung posted a record quarterly profit, driven by its semiconductor business, and said it expects a favorable supply-demand environment for memory chips to continue through at least 2027.
GIFT Nifty futures were hovering near the 24,420 mark before the open, up 57 points, pointing to a firm start, as noted by The Hindu BusinessLine. Despite a muted opening, the market remained comfortably above the 20-day Simple Moving Average throughout the session, noted Kotak Securities. The formation of a bullish candlestick on the daily chart, coupled with an uptrend continuation pattern on the intraday charts, suggests that the ongoing positive momentum is likely to persist. Technically, the Nifty faces immediate resistance in the 24,300–24,400 zone, which also coincides with the 200-day Exponential Moving Average, with sustained breakout above this band could open a move toward 24,500–24,600. Immediate support lies at 24,200, with the psychologically significant 24,000 mark below that. For the Bank Nifty, immediate resistance is seen at 57,300–57,400, with support at 56,700–56,800. As per The Economic Times, the IT sector has declined 25% year-to-date, with the top four IT majors—TCS, Infosys, HCL Tech and Wipro—down around 35-50% from their peaks over the past two years and trading at 13-17x PEs. While revenue growth for IT stocks is expected to remain in the low-to-mid single digits over FY26-28E, Jefferies believes a reversal in the AI trade could drive tactical upside, particularly after the sector's sharp decline.
