IT & Defence stocks shine as investors eye inflation data and global cues
As of mid-session today, the Indian stock market is showing mixed signals. The Sensex is currently trading around 82,349, slightly lower by about 96 points. The Nifty 50 is holding steady near 25,116, up by around 13 points. The market opened with mild gains but has turned volatile during the day.
What is Driving the Market Right Now
Global Trade Optimism
The market is receiving support from global cues, especially positive developments in trade negotiations between the United States and China. There is fresh optimism that both countries are working toward easing tariffs and securing critical mineral supply chains. This has helped improve the global risk sentiment, which is reflecting positively in Asian markets, including India.
Support from the RBI’s Recent Move
Last week, the Reserve Bank of India (RBI) cut interest rates and announced additional liquidity measures. This has continued to boost investor confidence, especially in sectors like banking, real estate, and auto, which benefit from lower interest rates. However, after several strong sessions, some profit booking is now visible in banking stocks.
Profit Booking in Financials
Major banks like HDFC Bank and ICICI Bank are showing signs of weakness today. After leading the recent rally, these stocks are now seeing some selling pressure. HDFC Bank is down around 0.5%, while ICICI Bank is down more than 1%. This is one reason why the Sensex is slightly in the red.
Rotation into IT and Metal Stocks
While financials are soft, other sectors like information technology (IT) and metals are performing well. IT stocks are gaining due to the global tech rally and a stable rupee. Investors are shifting focus toward these sectors, looking for fresh opportunities.
Small and Mid-Cap Stocks Gaining Ground
Broader markets are performing slightly better than large-cap indices. The BSE Midcap and Smallcap indices are both up by around 0.2%. This shows that investors are exploring opportunities beyond the major blue-chip companies.
Key Stocks in Action
Stocks Gaining
Jana Small Finance Bank is up by over 6% after it applied for a universal banking license. This is seen as a positive long-term move.
ITD Cementation is up nearly 9% after securing a large infrastructure project worth ₹893 crore. Investors are cheering the new order win.
Protean eGov Technologies is also gaining after winning a ₹100 crore contract. This has improved sentiment in tech-enabled government service providers.
Wipro, Tech Mahindra, and Grasim are among the top Nifty gainers today, supported by buying in IT and manufacturing themes.
Hindalco is rising as metal stocks benefit from higher global prices.
Stocks Falling
Asian Paints is under pressure due to rising input costs and a weak demand outlook in the paint industry.
HDFC Bank and ICICI Bank are slipping as investors take profits after recent gains.
Maruti Suzuki is also slightly down amid mixed sales data from the auto sector.
Defence Sector in Focus
Shares of defence-related companies like BEL (Bharat Electronics), BDL (Bharat Dynamics), Paras Defence, and Data Patterns are rising sharply. This rally is driven by reports that the Indian Ministry of Defence is planning a large missile system purchase worth nearly ₹30,000 crore. The order is expected to benefit these companies directly or through contracts.
Sectoral Performance
Performing Well
Information Technology (IT): IT companies are leading the market today. The Nifty IT index is up over 1%, driven by strong global demand and earnings expectations.
Metals: Stocks like Hindalco and Tata Steel are gaining as global metal prices rise.
Real Estate: Realty stocks are slightly positive. Investors expect lower interest rates to support housing demand.
Under Pressure:
Banking and Finance: After several strong days, financial stocks are seeing some correction. Bank Nifty, which tracks major banks, is down slightly today.
Auto: Some auto stocks are under pressure as investors remain cautious about demand recovery and cost inflation.
Expert Views and Market Strategy
Analysts say the Indian market is likely to remain range-bound today, with Nifty facing resistance near 25,200 and finding support around 25,000. Investors are waiting for fresh cues, including domestic inflation data, global economic indicators, and updates on foreign investment flows.
Short-term momentum is likely to continue, especially in midcap and small-cap stocks, as traders look for quick gains. However, caution is advised ahead of key macroeconomic announcements later this week.
Technical Outlook
Nifty 50: Currently trading at 25,116. Support is at 25,000, and resistance is expected around 25,200–25,300.
Sensex: Hovering around 82,349, down slightly due to financial stock weakness.
Bank Nifty: Trading below 57,000 today. Some pause is seen after a strong uptrend in the last few days.
What to Watch Next
Important Triggers This Week
Consumer Price Inflation (CPI) numbers are expected soon. These will help assess whether the RBI could cut rates further.
Foreign Institutional Investor (FII) activity will also be important. Recent FII inflows have supported market stability.
Global News: Any updates from US–China trade talks, US Federal Reserve comments, or crude oil prices can influence market direction.
Corporate Announcements: Look out for dividend declarations, buyback news, and major order wins.
The Indian stock market is trading with mixed gains today. The Nifty is slightly up, and the Sensex is slightly down. Sectors like IT, defence, and metals are performing well. Financials are under pressure due to profit booking. Broader markets like mid- and small-cap stocks are showing strength.
The mood in the market remains cautious yet optimistic. Traders are watching global signals and domestic data. Investors are advised to stay alert, avoid overexposure, and focus on quality stocks with strong fundamentals and a growth outlook.
