Nifty IT Index Falls 3.50% to 31,063.50 Points in Morning Indian Trading
Key Facts
The Nifty IT index fell 3.50% to 31,063.50 points in morning trading on Wednesday, October 28, making it the weakest-performing sectoral index, according to an HDFC SKY report. The decline came amid a broader sell-off in the Indian market, with the Sensex down 680.76 points, or 0.92%, at 72,917.91 points at 9:24 a.m. local time. The Nifty 50 also fell 182.15 points, or 0.8%, to 22,567.60 points at 9:25 a.m. These figures reflect morning trading, as investors awaited economic and monetary catalysts scheduled for later in the day.
Losses were concentrated in the sector’s large-cap stocks. Tech Mahindra fell 3.81% to 1,742.40 rupees, while HCL Technologies declined 3.67% to 1,367.90 rupees. Tata Consultancy Services lost about 3.06% to 2,420.40 rupees, according to the same report, while Reuters reported declines of about 3% each for TCS and HCLTech. The breadth of the declines among major companies put the sector’s pressure at the heart of the morning sell-off.
Indian technology stocks weakened despite a rise in U.S. equities in the previous session; the Nasdaq closed 1.18% higher on Tuesday, according to HDFC SKY. Reuters noted that Indian IT companies earn a significant share of their revenue in the United States, linking the sector’s performance to demand conditions in that market. The U.S. index’s advance did not prevent losses in Indian equities on Wednesday morning, with the domestic sector among the main drags on the indexes. The decline extended to the benchmark indexes, though moves were not uniform across all company sizes.
Higher oil prices were another factor weighing on the Indian market, which feels their effects through its import bill, deficit, rupee, and fuel and transport costs, according to HDFC SKY. The report said Brent crude rose $2.10, or 1.84%, to $115.98 a barrel. It linked the increase to supply disruption concerns after attacks on Saudi Arabia and said prices had approached six-month highs. Reuters estimated oil rose 1.4% to $115.4 a barrel, saying an attack on a Saudi refinery revived concerns about supply disruptions and inflation. Energy-market pressure coincided with investors awaiting the Federal Reserve decision, leaving them to weigh two influential factors in the day’s trading.
The Federal Reserve decision was expected late on the evening of October 28 in India, with rates forecast to remain in a range of 3.75% to 4%, according to HDFC SKY. Also due was India’s September industrial production index, which the Ministry of Statistics and Programme Implementation scheduled for Wednesday, October 28. The market estimated headline index growth at 7.2%, compared with the previous reading of 8.0% for August, according to Trading Economics. The data and pending decision provided context for the day’s trading, as technology stocks weakened alongside benchmark indexes and rising oil prices. Jio Platforms also listed on the same day, after an offering that raised 30,213 crore rupees and was subscribed 22.19 times, according to HDFC SKY. Reuters reported that the stock listed at a 21.4% premium to its offer price, making it India’s second-largest listed company by market capitalization.
For Infosys, EL7 data show the stock closed at $12.11 on October 27, compared with a close of $12.43 on October 26. This daily comparison comes alongside a decline in the rupee-denominated stock during Wednesday’s trading, but the two levels refer to different periods and do not represent a single price or unified real-time reading. The company reported revenue of $5,145 million in the second quarter of fiscal 2027, with constant-currency growth of 1.5% year over year and an operating margin of 21.0%. It also said the total contract value of large deals won was $5.2 billion, of which 62% were net-new deals. That did not change the fact that the company’s shares were among the biggest losers in morning trading, while industrial production data and the Federal Reserve decision remained the day’s main scheduled events.