Nifty IT Surge 3.6% Offsets Global Sell-Off, Nifty Flat at 24,211

Indian benchmarks erased an early 250-point slide on Monday, closing flat as a surge in IT stocks offset a global rout triggered by escalating West Asia tensions and a spike in crude oil.

The Nifty 50 closed at 24,211.65, up 4.75 points, after recovering from an intraday low of 24,000.20. The BSE Sensex ended at 77,616.40, a gain of 47 points. The Nifty IT index jumped 3.60%, with TCS, Infosys, HCL Technologies, and Tech Mahindra among the top gainers.

LTIMindtree reported a 17% profit jump and 18% revenue growth over the weekend, extending the positive momentum from TCS's results. The IT sector's strength stood out against a backdrop of deep losses across Asia. Seoul's Kospi fell 9%, and Tokyo's Nikkei dropped nearly 2% after fresh US strikes on Iran and Iranian retaliatory actions across four countries.

"Monday's session was more impressive than the flat close suggests. India ended flat. That is a statement," said Sarvam Goel, Founder of Pocketful.

The recovery masked a difficult backdrop. Brent crude surged roughly 5% to around $79.5 a barrel amid renewed fears of supply disruptions from West Asia. The US also revoked Iran's oil export waiver, effective July 17. Elevated crude weighed on the Indian rupee, which weakened 30 paise to close at 95.62 against the dollar, breaching the 96-mark intraday for the first time in 21 sessions. The rupee was the weakest performer among Asian currencies.

Sectoral gains were concentrated. IT, Media, and Consumer Durables outperformed. FMCG, Metals, Cement, and Healthcare ended in the red, with FMCG the worst performer. Grasim Industries and Tata Steel were among the key Nifty laggards. The broader market tracked the benchmarks. The Nifty Midcap 100 edged up 0.01%, and the Nifty Smallcap 100 gained 0.03%, with both indices forming bullish candles after recovering from early lows. The Nifty Midcap 100 registered a fresh all-time high during the session.

Market breadth was largely neutral. The BSE advances-declines ratio stood at 1.13, with 236 stocks within the Nifty 500 universe closing in positive territory. The India VIX rose around 10%, reflecting underlying nervousness.

The Q1 FY27 earnings season has so far provided some relief. "The initial batch of broader Q1 earnings has come in better than expected, suggesting that earnings downgrades for the quarter may be less severe than previously anticipated," said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. HCL Technologies was set to report results after market hours on Monday, with investor expectations high following back-to-back IT beats.

The week ahead is dense with event risk. Over 140 companies are scheduled to report Q1 FY27 results, including Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, Wipro, and Tech Mahindra. Together, they account for over 31% of the Nifty 50's weight. Domestically, India's June CPI and WPI inflation data are due, alongside trade balance figures and foreign exchange reserves. Globally, US inflation numbers and Federal Reserve Chair Jerome Powell's semi-annual testimony will be closely watched, as will China's second-quarter GDP. Three IPOs targeting to collectively raise nearly ₹10,100 crore are also lined up in the primary market.