IT stocks lead the decline while Realty and Defence stocks outperform; rising crude import costs keep investors cautious
Indian benchmark equity indices reversed their early gains on Tuesday as selling pressure in information technology stocks dragged the market lower, while renewed strength in crude oil prices added to investor caution. At around noon, the Sensex was down 225.19 points, or 0.30 per cent, at 74,633.80, while the Nifty50 declined 61.75 points, or 0.26 per cent, to 23,353.50.
The market had opened on a relatively firm note following positive global cues, but gains failed to sustain as IT counters came under pressure. The weakness was concentrated in large-cap technology stocks, with HCLTech, Tech Mahindra and Infosys emerging among the biggest Nifty50 losers. The Nifty IT index was the weakest-performing major sectoral index during the session.
Broader Market Shows Mixed Trend
The broader market remained relatively resilient compared with the benchmark indices. The Nifty MidCap index gained around 0.11 per cent, while the Nifty SmallCap index slipped 0.14 per cent. The mixed performance indicates that selling was more concentrated in selected large-cap stocks rather than being broad-based across the entire market.
Among sectors, Nifty Realty emerged as one of the strongest performers, while IT remained the biggest laggard. The divergence between sectors suggests that investors were rotating towards areas showing stronger domestic demand or company-specific triggers rather than taking an aggressive directional position across the market.
IT Stocks Under Pressure
Information technology stocks remained at the centre of Tuesday's market weakness. HCLTech, Tech Mahindra and Infosys were among the top Nifty50 losers as investors continued to assess the outlook for technology spending, global demand and earnings.
The IT sector also remains sensitive to developments in the US economy and currency markets because a significant portion of Indian IT companies' revenues comes from overseas markets. Concerns over discretionary technology spending and geopolitical uncertainty can therefore influence sentiment toward the sector.
Tuesday's selling pressure comes despite broader global technology strength in recent sessions, highlighting the importance of company-specific and sector-specific factors for Indian IT stocks. Reuters
JSW Infrastructure Hits Fresh High
While the benchmark indices weakened, several individual stocks attracted strong buying interest. JSW Infrastructure climbed as much as 7.4 per cent to ₹375.50, touching a fresh high on the NSE. The stock had gained around 57 per cent in the current financial year, reflecting sustained investor interest in the infrastructure and logistics space.
The move highlights the continuing strength in selected infrastructure-linked companies despite the broader market's cautious tone.
Sterling and Wilson Gains on ₹985-Crore Orders
Sterling and Wilson Renewable Energy also witnessed strong buying, rising as much as 7.7 per cent to ₹186.66 during the session.
The trigger was the company's announcement of two orders worth a combined ₹985 crore. Order inflows remain an important market driver for capital-goods, engineering and renewable-energy companies because they provide visibility on future execution and revenue opportunities.
The sharp reaction in the stock demonstrates how company-specific developments can outweigh broader market weakness.
Defence Stocks Continue to Attract Buying
Defence stocks were another bright spot in Tuesday's trading session. Shares of Unimech Aerospace and Manufacturing, Apollo Micro Systems, Aequs and other defence-related companies advanced by as much as 10 per cent.
Investor interest in the sector remains linked to expectations around defence procurement, domestic manufacturing, exports and a stronger order pipeline. The sector's performance stood in contrast to the weakness seen in IT stocks, reinforcing the market's current preference for selected domestic-facing themes.
Crude Oil Emerges as a Key Macro Risk
One of the biggest concerns for Indian investors remains the sharp increase in the country's crude oil import bill.
India's crude oil import bill increased 48.4 per cent year-on-year to $74.8 billion during April-August 2026, even though import volumes remained broadly unchanged. India imported about 100.7 million tonnes during the period compared with 101.1 million tonnes a year earlier. Moneycontrol
The increase is primarily a price-driven phenomenon. The Indian crude basket averaged $90.19 per barrel in August, while the average price for September so far has risen substantially, according to PPAC data cited by Moneycontrol. Moneycontrol
Higher crude prices can affect India through several channels, including the trade deficit, inflation, corporate input costs, the rupee and household purchasing power. A prolonged period of elevated oil prices could therefore remain an important variable for equity markets.
NSE IPO Draws Strong Institutional Demand
The primary market is also commanding attention following the conclusion of the ₹22,562-crore NSE IPO. The issue received bids for approximately 50.58 crore shares against 8.86 crore shares on offer, resulting in an overall subscription of 5.71 times. Business Standard
The subscription was driven predominantly by institutional investors. The qualified institutional buyer portion was subscribed 12.68 times, while the non-institutional category received 6.55 times subscription. The retail portion was subscribed 1.39 times. Business Standard
The numbers indicate continued institutional participation in India's primary equity market, even as investors remain selective in the secondary market.
AceVector IPO Also in Focus
Investors are also turning their attention to upcoming IPOs. AceVector, the parent company of Snapdeal, is set to open its IPO for public subscription on September 25.
The company has set a ₹30-32 price band for its ₹420-crore issue, comprising a fresh issue of ₹287 crore and an offer for sale by existing shareholders. The proposed valuation at the upper end of the price band is around ₹1,741 crore. Business Standard
With several large issues coming to the market, investors are likely to continue evaluating IPO valuations, subscription trends and listing expectations alongside the performance of listed equities.
Market Outlook
Tuesday's trading session reflects a market caught between strong stock-specific buying and growing macroeconomic concerns. IT weakness is weighing on the benchmark indices, while infrastructure, defence and selected domestic-facing stocks are attracting buying interest.
The rise in India's crude oil import bill adds another layer of uncertainty, particularly if international oil prices remain elevated for an extended period. At the same time, strong institutional participation in the NSE IPO indicates that liquidity and interest in India's capital markets remain substantial.
For the broader market, the immediate focus is likely to remain on crude oil prices, IT-sector performance, global market cues, foreign flows and sector rotation. The mixed movement in large-cap and broader-market indices suggests that investors are currently favouring selective opportunities rather than taking a uniform market-wide position.