Nifty IT rally holds indices flat near 24,000 ahead of Fed

Indian equities ended largely unchanged on Tuesday as a rally in information technology stocks offset weakness in energy and defence shares, keeping the Nifty 50 pinned near the 24,000 mark ahead of the US Federal Reserve policy outcome.

Market overview

Index	28 Jul 2026 Close	Move & % Change	Comments
Nifty 50	approx. 24,000	flat, rangebound	Held near 24,000 as IT gains offset sectoral weakness.
Sensex	approx. 76,800	flat, marginally lower	Traded around 76,800 amid cautious pre Fed positioning.
Nifty IT	30,547.15	+1,105 pts (+3.75%)	Extended two day rebound on global software strength.
Nifty FMCG	not stated	+0.55%	Recovered modestly despite select earnings related pressure.
Nifty Realty	not stated	+0.53%	Tracked broader risk appetite in rate sensitive pockets.
Nifty India Defence	not stated	-1.30%	Came under pressure after recent outperformance.
Nifty Energy	not stated	-0.92%	Weighed by softer crude and global growth concerns.

• Nifty traded in a narrow band around 24,000 through the session.
• Sensex oscillated near 76,800, briefly slipping into negative territory.
• According to NSE data, foreign investors sold ₹822 crore of equities on 27 July.
• Domestic institutions bought ₹2,329 crore, cushioning headline indices.
• The Indian rupee opened at 95.76 per dollar, up 0.16% from 95.91.

Earnings and macro backdrop

• Companies covering 51% of Nifty market capitalisation have reported Q1 results.
• Aggregate Nifty earnings growth is tracking at 12%, per current compilation.
• Analysts flag an earnings revival trend into coming quarters.
• Credit growth in the economy is running near 18%, supporting banking and consumption.
• July monsoon progress has cut the rainfall deficit to 15.4%.
• Lower crude prices and stable macros are aiding risk sentiment.
• “Q1 results announced so far indicate an earnings revival” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Key movers

Top gainers

Stock	Sector	Notable Factor
TCS	IT services	Led Nifty gainers, up about 4.3% in early trade.
Infosys	IT services	Rose around 3%, trading above key resistance levels.
HCLTech	IT services	Gained nearly 3%, part of IT led rally.
Tech Mahindra	IT services	Advanced close to 3%, among top Sensex gainers.
Cipla	Pharma	In the Nifty gainers list with gains above 2%.

• Infosys traded near ₹1,112, up 3.04% intraday, with three month returns at -3.39%.
• Infosys volume at 21.2 million shares exceeded its average weekly volume.
• Infosys closed previous session at ₹1,040.9, up 3.68%.
• Infosys is trading above its second resistance (R2) at ₹1,097.47.

Top losers

Stock	Sector	Notable Factor
BEL	Defence	Among major Sensex laggards, fell up to 3.5%.
Power Grid Corp	Utilities	Declined on Sensex amid profit taking.
NTPC	Utilities	Traded weaker despite broader index stability.
SBI	Banking	In the top losers list on Sensex.
HDFC Bank	Banking	Came under mild pressure after recent moves.
Bharti Airtel	Telecom	Declined up to 3.5% on the Sensex list.

• Hindustan Unilever shares dropped over 6% after Q1 volume declines.
• HUL Q1 profit missed estimates, with PAT down 3% to ₹2,673 crore.

Sectoral action

Sector / Index	Direction (approx.)	Key Drivers
Nifty IT	up 3.75%	Global software rally, softer Fed expectations, brokerage upgrades.
Nifty FMCG	up 0.55%	Mixed earnings, selective buying despite HUL weakness.
Nifty Realty	up 0.53%	Benefited from lower yield expectations and risk appetite.
Nifty India Defence	down 1.30%	Profit booking after prior gains.
Nifty Energy	down 0.92%	Impact of lower crude and growth concerns.

• All Nifty IT constituents traded in the green.
• Coforge surged about 7%, topping the IT pack.
• Mphasis gained around 5%, extending recent recovery.
• LTM, Persistent Systems, Tech Mahindra, TCS and Infosys rose over 2.5% each.
• L&T Technology, HCLTech and Wipro added between 1% and 2%.

Technical outlook

• Nifty has traded below its 200 day moving average since 27 February 2026.
• This is the second longest sub 200 DMA stretch for Nifty in a decade.
• Pullback is likely to continue while Nifty holds above 23,800.
• Corresponding key support for Sensex is 76,300.
• Nifty 20 day simple moving average lies around 24,100 to 24,150.
• Sensex 20 day SMA band is 77,000 to 77,300.
• A break below 23,800 could drag Nifty towards 23,700 to 23,600.
• Sensex could slip towards 76,000 to 75,500 if support fails.
• Traders are advised to cut weak longs near 24,100 to 24,200.
• Fresh buying is favoured on dips towards 23,800 to 23,700.

Global cues

Market / Asset	Movement	Notes
Kospi (South Korea)	down 9% to 11%	Hit circuit breaker as chip stocks slumped over AI concerns.
Nikkei (Japan)	down over 4%	Dragged by double digit declines in chip related names.
MSCI Asia Pacific	-2.92%	Technology stocks led regional losses.
S&P 500 futures	-0.3%	Investors awaited Fed decision and megacap earnings.
Nasdaq 100 futures	-0.2%	Followed semiconductor led selloff.
Dow futures	+0.05%	Supported by prior session gains and softer oil.
Brent crude	about -1.0%	Traded near $88 per barrel, below $90.
WTI crude	about -1.1%	Hovered around $82 per barrel.

• Global semiconductor stocks sold off on concerns over Chinese AI chip competition.
• Reports of advances in China’s chip industry hit AI related names.
• Asian currencies weakened, led by the Indonesian rupiah and Taiwan dollar.
• Oil fell as US Iran tensions eased and talks progressed.
• Lower crude has tempered inflation fears and rate hike expectations.
• Probability of a 25 bps Fed hike slipped to 33.7% from 37.4%.

IT sector drivers

• US listed software and IT services stocks outperformed the Philadelphia Semiconductor Index.
• Accenture and EPAM Systems each gained 4.8% in US trade.
• Gartner rose 5%, Globant 4%, Cognizant 3.5%.
• Improving global risk sentiment has aided technology valuations.
• Easing Middle East tensions and lower oil prices support growth expectations.
• Softer Fed expectations benefit long duration growth sectors like IT.
• A global brokerage upgraded Indian IT to neutral from underweight.
• The brokerage cited more attractive valuations after sharp corrections.
• It also mentioned a potential “reverse AI trade” favouring IT services.

Key market statistics

Statistic	Value / Change	Context
FII flows (27 Jul)	₹822 crore net selling	Reflects continued foreign caution ahead of Fed.
DII flows (27 Jul)	₹2,329 crore net buying	Domestic support offset overseas outflows.
Rupee open	95.76 per dollar	Benefited from softer crude and stable flows.

• Traders remain focused on the Fed policy outcome later this week.
• Markets are also tracking US megacap tech earnings for demand cues.
• Domestic earnings, especially in IT and financials, will guide near term moves.

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