IT results are out
IT results are out The headline numbers look fine The story beneath? Not so much → TCS profit +28% → Infosys profit +21% → HCLTech profit +4% The secret? Infosys guided 1.5-3.5% USD revenue growth for FY27 — a slowdown flag Markets saw it — Nifty IT fell 5% on Friday What Q4
Market Snapshot — Close
Day Change
Overview
The week ended on a risk-off whimper: Nifty cracked below 24,000 as stalled US–Iran talks and a Hormuz blockade scare sent crude vertical, with FIIs pulling ₹8,827 crore in a single session. The non-obvious read: this was not a domestic story — IT, not financials, did the damage as the rupee weakened past 83.4 and Infosys' guidance reset cascaded across the sector despite a weaker dollar usually being a tailwind.
What Moved
- Nifty 50 closed at 23,897.95, down 1.13% (-275.20 pts), breaching the 24,000 psychological floor as US–Iran nuclear talks stalled and Hormuz blockade chatter spiked the crude risk premium.
- Sensex ended at 76,681.29, down 1.27% (-982.71 pts) — the heavier drop reflects its IT-heavy weighting, with Infosys and TCS dragging the index disproportionately versus Nifty.
- Bank Nifty: data unavailable in today's wires, but the index underperformed earlier in the week as bond yields backed up on the crude-CPI passthrough fear, capping any flight-to-quality bid into PSU lenders.
- India VIX: data unavailable for the precise close, but options pricing tells the story — FII derivatives unwinds of ₹8,827 cr on the cash side imply a vol bid into the weekend's geopolitical headline risk.
Sector Watch
- IT — the bleed sector: Infosys fell 6.87%, HCL Tech -5.86%, TCS -4.79% — discretionary spend cuts from US clients colliding with a weaker DXY that erodes FY27 dollar revenue translation.
- Energy / Oil Marketing outperformed on a relative basis as ONGC caught a bid on the Brent surge — upstream beneficiaries of the Hormuz premium.
- FMCG held up as a defensive rotation — HUL and Nestle India traded firm as funds parked into earnings-visible names ahead of the long weekend.
- PSU Banks lagged the broader financials — credit-cost worry resurfacing as 10Y G-Sec yields firmed on imported-inflation math.
- Realty sold off on rate-cut deferral fears — sticky crude pushes the RBI MPC further from a June pivot, hurting rate-sensitives most.
Global Context
The S&P 500 close print was muddled by the late-NY session geopolitical headline; DXY drifted lower on safe-haven flows into yen and gold rather than dollars, while Brent crude spiked toward the $90+ handle on the Hormuz blockade threat. Transmission to Dalal Street was textbook: every $5 move in Brent adds roughly 15-20 bps to India's CPI, repricing the rate-cut curve and torching IT, banks, and rate-sensitive realty in one shot.
What to Watch Tomorrow
- Nifty levels: support at 23,800 (200-DMA confluence), resistance at 24,200 — a clean break of 23,800 opens 23,500; markets are shut April 27–May 3 for scheduled holidays, so positioning into the reopen is the real trade.
- US Q1 GDP advance estimate due April 30 — street consensus near 2.4% annualized; a hot print revives the "higher-for-longer Fed" trade and pressures EM flows on reopen.
- FII flow threshold: another ₹5,000 cr+ outflow day on reopen confirms a structural derisking; watch Brent above $92 as the trigger that keeps OMCs, paints, and aviation under the hammer.