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A flat index that hid a narrow IT selloff
The Nifty slipped just 0.34% to 23,865.75 on Tuesday, but that flat number hid a sharp, narrow selloff in IT (Nifty IT −2.73% to a multi-year low, with Infosys and TCS at fresh 52-week lows) on Accenture's weak guidance and the fear that AI is shrinking the outsourcing work these firms get paid for. The rest of the market was green. We unpack the tell — IT fell even though the US Nasdaq was green and the rupee softened — plus the Delhi EV split inside autos and a clean quarter-end where domestic money absorbed foreign selling.
Key points:
The headline was flat (Nifty −0.34% to 23,865.75) but masked a single-sector re-pricing: Nifty IT −2.73% to a multi-year low, Infosys and TCS at fresh 52-week lows; the rest of the market closed green, with midcaps and smallcaps both higher.
The tell: Indian IT fell even though the US Nasdaq was green overnight and the rupee softened, both of which normally help dollar-earning IT firms — so the weakness was about Indian-IT fundamentals (the AI and Accenture worry), not the global mood or currency.
The Delhi EV Policy (effective 1 July) split the auto pack: Ola Electric (+8.4%) and Ather Energy (+5.2%, record high) rose, while Eicher Motors, the maker of Royal Enfield's petrol bikes, fell about 4.75%. Maruti Suzuki rose about 5.2% on a Jefferies upgrade.
Quarter-end was book-squaring, not capital flight: foreign investors sold ₹2,557 crore while domestic funds bought ₹6,842 crore, more than absorbing the exit; the fear gauge stayed flat through monthly expiry and quarter-end.
Watch ahead: Q1 FY27 earnings season opens mid-July (TCS on 9 July, Infosys on 23 July) and is the real test of whether the IT selloff is justified; Wednesday 1-July brings June auto sales and the final manufacturing PMI; the monsoon (driest June in over a century) has a relief window flagged around 3 July.
Note on dates: 9 July is TCS results, not a pharma-tariff date. The US Section-232 pharma tariff takes effect 31 July for named firms and 29 September for all others, with Indian generic exporters exempt for now.
Disclaimer:General market commentary, not investment advice. The author is not a SEBI-registered Research Analyst; RA registration is in process and has not been granted. Nothing in this podcast should be construed as a research report under the SEBI Research Analyst Regulations 2014. For investment advice tailored to your situation, consult a SEBI-registered Investment Adviser. Markets are risky; you may lose money; act with care. Narration is AI-generated using Sarvam TTS; script and analysis are by Nimit Mehra, CFA L3.
Byline: Nimit Mehra, CFA L3. NISM XA/XB. SEBI RA-registration in process.
Channels: Podcast on Spotify · Instagram @nimitmehra · X @nimitmehra
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By Nimit MehraThe Nifty slipped just 0.34% to 23,865.75 on Tuesday, but that flat number hid a sharp, narrow selloff in IT (Nifty IT −2.73% to a multi-year low, with Infosys and TCS at fresh 52-week lows) on Accenture's weak guidance and the fear that AI is shrinking the outsourcing work these firms get paid for. The rest of the market was green. We unpack the tell — IT fell even though the US Nasdaq was green and the rupee softened — plus the Delhi EV split inside autos and a clean quarter-end where domestic money absorbed foreign selling.
Key points:
The headline was flat (Nifty −0.34% to 23,865.75) but masked a single-sector re-pricing: Nifty IT −2.73% to a multi-year low, Infosys and TCS at fresh 52-week lows; the rest of the market closed green, with midcaps and smallcaps both higher.
The tell: Indian IT fell even though the US Nasdaq was green overnight and the rupee softened, both of which normally help dollar-earning IT firms — so the weakness was about Indian-IT fundamentals (the AI and Accenture worry), not the global mood or currency.
The Delhi EV Policy (effective 1 July) split the auto pack: Ola Electric (+8.4%) and Ather Energy (+5.2%, record high) rose, while Eicher Motors, the maker of Royal Enfield's petrol bikes, fell about 4.75%. Maruti Suzuki rose about 5.2% on a Jefferies upgrade.
Quarter-end was book-squaring, not capital flight: foreign investors sold ₹2,557 crore while domestic funds bought ₹6,842 crore, more than absorbing the exit; the fear gauge stayed flat through monthly expiry and quarter-end.
Watch ahead: Q1 FY27 earnings season opens mid-July (TCS on 9 July, Infosys on 23 July) and is the real test of whether the IT selloff is justified; Wednesday 1-July brings June auto sales and the final manufacturing PMI; the monsoon (driest June in over a century) has a relief window flagged around 3 July.
Note on dates: 9 July is TCS results, not a pharma-tariff date. The US Section-232 pharma tariff takes effect 31 July for named firms and 29 September for all others, with Indian generic exporters exempt for now.
Disclaimer:General market commentary, not investment advice. The author is not a SEBI-registered Research Analyst; RA registration is in process and has not been granted. Nothing in this podcast should be construed as a research report under the SEBI Research Analyst Regulations 2014. For investment advice tailored to your situation, consult a SEBI-registered Investment Adviser. Markets are risky; you may lose money; act with care. Narration is AI-generated using Sarvam TTS; script and analysis are by Nimit Mehra, CFA L3.
Byline: Nimit Mehra, CFA L3. NISM XA/XB. SEBI RA-registration in process.
Channels: Podcast on Spotify · Instagram @nimitmehra · X @nimitmehra