Nifty falls as IT stocks slide, crude jumps on West Asia flare-up

Indian equities declined around 0.6% on Thursday, with the Nifty 50 slipping below 23,150 and the Sensex losing over 350 points, as renewed US Iran tensions pushed Brent crude near 95 dollars a barrel and hit risk appetite.

The selloff was led by information technology and auto stocks, while broader markets tracked the weakness. Global risk sentiment stayed fragile amid a global tech correction and concerns over foreign institutional investor positioning in India.

Market overview

Index	11 Jun 2026 Close (approx.)	Move & % Change	Comments
Sensex	73,600	-350 pts (-0.6%)	Dropped on IT, auto weakness and higher crude prices.
Nifty 50	23,100	-100 pts (-0.6%)	Fell below 23,150 as geopolitical risk hit sentiment.
Nifty Midcap 100	approx. prior close – 0.6%	-0.6%	Broader markets mirrored large-cap declines.
Nifty Smallcap 100	approx. prior close – 0.6%	-0.6%	Smallcaps extended recent underperformance.

Note: figures are approximate; final exchange data not available at time of publication.

• Nifty 50 decline driven by IT, auto, select financials.
• Around 1,740 NSE stocks declined, 696 advanced, 97 were unchanged.
• Market breadth indicated clear selling pressure across segments.

Global and macro cues

Market/Asset	Movement	Notes
Brent crude futures	around +2%, near 95 dollars	Spiked after Iran declared closure of Strait of Hormuz.
WTI crude futures	more than +2%, near 92 dollars	Tracked Brent higher on supply disruption fears.
Nasdaq Composite	almost -2% (previous session)	Global tech selloff weighed on Indian IT stocks.
USD/INR	rupee at 95.60, down 35 paise	Rupee weakened alongside risk-off and higher oil.

• Iran said the Strait of Hormuz was closed, warning vessels against passage.
• The waterway handles over 20% of daily global oil and gas shipments.
• Higher crude raised concerns on India’s inflation and current account.
• US inflation at 4.2% increased worries of further Federal Reserve tightening.
• A rise in US bond yields is seen as negative for global equities.

• “The off-and-on geopolitical drama in West Asia continues, with the latest escalation pushing Brent crude to 95 dollars again.”

— VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

FII positioning and Nifty outlook

• Citi cut its Nifty 50 target to 26,000 from 27,000 in its latest strategy note.
• The downgrade cited West Asia conflict and persistent FII outflows from India.
• India’s allocation in global emerging market funds is at a five-year low.
• FII underweight on India remains near a 20-year high, as per Citi.
• The bank flagged low foreign interest despite India’s macro stability.

Sectoral action

Sector/Index	Direction (approx.)	Key Drivers
Nifty IT	down more than 2%	Hit by global tech selloff and cautious sector outlook.
Nifty Auto	down around 1%	Higher crude raised cost and demand concerns.
Nifty Consumer Durables	down around 1%	Risk-off mood and rate worries weighed on discretionary names.

• All major sectoral indices opened in the red.
• IT and autos led losses, financials were mixed, defensives saw selective buying.

IT stocks under pressure

• Nifty IT has fallen more than 5% so far this week.
• The index lost over 2% in Thursday’s session alone.
• Infosys, TCS and HCLTech were among the top Sensex losers.
• The Nifty IT basket shed about ₹50,000 crore in market capitalisation in 15 minutes.
• HSBC, in a recent note, highlighted a cautious sentiment on the IT sector.
• The decline mirrored the almost 2% fall in the Nasdaq Composite overnight.

• “The weakness in US tech stocks since last Friday is likely to gather momentum.”- VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Reliance Industries: valuation and brokerage view

• Reliance Industries (RIL) has fallen almost 20% year to date.
• This compares with an 11% decline in the Nifty 50 over the same period.
• A domestic brokerage upgraded RIL to LONG from ADD.
• It set a September 2027 target price of ₹1,586, implying 26% upside.
• RIL’s forward P/E has compressed to about 19 times, versus a 21 times average.
• EV/EBITDA is around 9.9 times, below the minus one standard deviation band.
• The brokerage sees valuation near multi-year trough levels of about 9.6 times EV/EBITDA.

• O2C EBITDA per tonne fell to 84 to 90 dollars from 105 to 118 dollars at peak.
• It expects O2C EBITDA per tonne to recover to 97 / 105 dollars in FY27 / FY28.
• O2C EBITDA is projected at ₹644 billion in FY27 and ₹688 billion in FY28.
• Jio ARPU has risen from ₹150 in FY22 to ₹214 currently.
• Jio EBITDA is estimated at ₹84,500 crore in FY27 and ₹93,300 crore in FY28.
• Jio EBITDA margin is expected at 53% in those years.
• The brokerage valued the New Energy business at ₹1,200 billion in its SOTP.

• “Medium-term underperformance, near-term positive earnings surprise in O2C and valuation near post-Covid lows make risk-reward favourable.” – Equirus Securities note on Reliance Industries.

Market internals and currency

Statistic	Value/Change	Context
Advance-decline (NSE)	696 up / 1,740 down / 97 flat	Clear negative breadth, selling across sectors.
USD/INR	95.60, rupee down 35 paise	Weaker rupee reflects oil spike and risk-off flows.

• Analysts said RBI and government measures have stabilised the rupee only partially.
• Persistent FII caution and higher oil keep upside in equities capped near term.
• Market participants are watching AI and US tech stocks for cues on risk appetite.

Technical and near-term outlook

• Nifty 50 slipped below 23,150, a near-term psychological support.
• Intraday low was around 23,100, indicating selling on rallies.
• Sensex holding above 73,500 remains key for short-term sentiment.
• Traders are watching crude’s move around 95 dollars for further direction.

• “As things stand now, this is unlikely to turn the FIIs into buyers in India, as there is very low interest by FIIs in India now.”

— VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

FAQs

Frequently Asked Questions

Why did the Nifty fall around 0.6% today?

The Nifty dropped on renewed US Iran tensions, a spike in Brent crude near 95 dollars and heavy selling in IT and auto stocks, alongside weak global tech cues.

What triggered the sharp decline in Nifty IT stocks?

Nifty IT fell over 2% as Infosys, TCS and HCLTech tracked an almost 2% fall in the Nasdaq Composite, with HSBC flagging cautious sentiment on the sector.

How are foreign investors positioned on India right now?

Citi said India’s allocation in global emerging market funds is at a five-year low and FII underweight on India is near a 20-year high, indicating subdued foreign interest.