On Monday, the BSE Sensex and Nifty 50 fell over 1% as the rupee hit a fresh record low and bond yields surged to all-time highs, weighing on investor sentiment. According to The Economic Times, the rupee dropped to a fresh all-time low of 96.18 against the US dollar, eclipsing its previous record of 96.1350. This marks the fifth consecutive session when the Indian rupee hit a fresh record low as high oil prices sent bond yields soaring to record high levels. Despite the broader market pressure, the Nifty IT index emerged as the only sectoral index trading in the green, climbing 1.2% to around 28,049, demonstrating remarkable resilience in the technology sector.
Oracle Financial Services Software emerged as the top gainer on the IT pack, rising over 3% on Monday, lifting the Nifty IT index over 1% even as the broader market remained under pressure. As reported by The Economic Times, LTIMindtree and Tech Mahindra climbed more than 2% each, while Persistent Systems gained nearly 2% each. Wipro shares rose over 1% each, with Tata Consultancy Services (TCS) and HCL Technologies making marginal gains. The total value of all companies on the Nifty IT index reached ₹1,752 crore, highlighting the sector's strong performance despite challenging market conditions. According to ETMarkets, IT stocks had seen a sharp decline recently, with the Nifty IT index plunging around 12% in one month, but recent developments suggest renewed investor optimism in the sector.
The rupee's depreciation to a fresh all-time low of 96.18 against the US dollar provides significant tailwinds for IT companies, as these firms mostly derive their revenue in US dollars. As reported by The Economic Times, the rupee has been Asia's worst performer so far in 2026, dropping 5.5% since the Iran-US war erupted on February 28. According to LKP Securities, market participants remain cautious amid fears that elevated crude prices may persist for a longer duration, with the near-term rupee range expected between 95.55–96.25. This currency weakness boosts hopes for better earnings and profitability for IT companies, offsetting some of the challenges they face from global AI disruption concerns.
Power Grid Corporation of India tumbled after reporting weak operational performance, with its earnings before interest, taxes, depreciation, and amortization (EBITDA) declining 19% to ₹7,501 crore and EBITDA margin contracting by 8.7 percentage points in Q4 FY26. As reported by The Economic Times, the Nifty Midcap 100 closed flat with a negative bias at 60,473.80, reflecting a 93.35 points or 0.15% decline. The Nifty Smallcap 100 ended at 17,656.75 level, down by 225.85 points or 1.26%. However, the Nifty IT index showed remarkable strength, with IT stocks gaining up to 3% and Tech Mahindra leading the pack with 4.85% gains, demonstrating sector-specific resilience and investor preference for technology companies despite recent AI disruption concerns.
