IT earnings are done
IT earnings are done Three numbers tell the whole story Market decoded — time to act → TCS: profit +28.7% — EBIT margin expansion to 25.3% → Infosys: profit +21% — FY27 guidance: 1.5% to (-)3.5% → HCL: profit +4.2% — margins flat to down Top pick is obvious: the one with margin
Market Snapshot — Close
Day Change
Overview
PM Modi's public counsel to Indians to curb gold purchases, foreign travel, and energy consumption — an unusually blunt admission of wartime economic pressure — landed on already-fragile sentiment, sending Nifty to its second consecutive session of heavy losses. The non-obvious read: DIIs pumped ₹7,990 Cr into the market, the heaviest single-session domestic support in recent weeks, yet it couldn't stop a 436-point Nifty decline — signalling that FII risk-off and geopolitical fear have overwhelmed institutional cushioning.
What Moved
- Nifty 50 — 23,379.55 (−1.83%): West Asia war escalation drove risk-off selling; Modi's austerity comments deepened the afternoon slide as markets repriced domestic demand expectations downward.
- Sensex — 74,559.24 (−1.92%): Heavier component weight in IT and consumer names amplified the index's fall relative to Nifty; second straight session of 1%+ losses.
- Bank Nifty — data unavailable: data unavailable.
- India VIX — data unavailable: data unavailable; fear premium likely elevated given geopolitical backdrop.
Sector Watch
- IT — worst performer: Bleed accelerated on twin concerns — AI-driven enterprise pricing pressure from OpenAI's latest corporate push, and rupee at a record low of 95.28 (May 11 close) compressing offshore revenue hedges. Specific stock moves: data unavailable.
- Realty — sharp underperformer: Rate-sensitive sector sold off as rising crude threatens to delay any RBI easing; foreign capital outflows compound sector pain. Specific stock moves: data unavailable.
- Consumer Durables — underperformer: Modi's demand-compression signal hit sentiment directly — gold, appliances, and discretionary names repriced. Specific stock moves: data unavailable.
- Aviation — under pressure: PM's explicit call to cut foreign travel is a direct demand headwind; IndiGo and SpiceJet among names in focus. Specific % moves: data unavailable.
- Nifty MidCap/SmallCap — severe: MidCap −2.54%, SmallCap −3.17% — broader market bore the brunt of FII liquidation, with EM risk-off hitting the less liquid end hardest.
Global Context
S&P 500 closing level, DXY, and Brent crude specific prices — data unavailable from available sources; crude was directionally rising on West Asia supply-disruption fears. The transmission into India was direct: a crude spike widens the current account deficit, pressures the rupee (already at record lows), raises import costs, and gives RBI no room to cut — compressing both equity multiples and consumer sentiment simultaneously.
What to Watch Tomorrow
- Nifty levels for May 13: Key support at 23,200 (round-number floor and prior consolidation zone); resistance at 23,650 (the intraday level breached today). A close below 23,200 opens a measured move to 22,800; reclaim of 23,650 needed to neutralise bearish momentum.
- Government policy response: Watch for any formal government or RBI communication on May 13 clarifying the scope of PM Modi's austerity call — ambiguity around gold import curbs or travel taxes is the live wildcard. Any official clarification before market open sets the opening tone.
- FII flow threshold: If FII net outflow on May 13 exceeds ₹2,000 Cr, it crosses the level DII buying struggled to offset today (₹1,959 Cr). A second consecutive session above this threshold with DII absorption weakening would signal structural de-risking, not tactical selling.