Sensex, Nifty trade flat as Bajaj twins rally; IT stocks snap winning streak

Benchmark indices opened on a subdued note on Friday, with gains in financial stocks helping the market stay in positive territory despite a sharp decline in information technology shares after a strong rally over the past few sessions.At 9:21 am, the BSE Sensex was up 19.50 points, or 0.03%, at 77,947.65, while the NSE Nifty50 gained 26.70 points, or 0.11%, to trade at 24,343.85.The market witnessed stock-specific action, with financials providing the biggest support. Bajaj Finance surged 3.84% after its quarterly earnings, emerging as the top Sensex gainer. Bajaj Finserv climbed 3.10%, while Mahindra & Mahindra, BEL, Axis Bank, Maruti Suzuki and SBI also traded in the green.However, the recent rally in IT stocks paused, with the Nifty IT index dropping 3.26% to emerge as the worst-performing sector. Infosys fell 3.64%, TCS declined 3.54%, HCLTech slipped 3.27% and Tech Mahindra dropped 2.41% as investors booked profits following the sector's strong run over the past week. Despite weakness in IT, broader sectoral trends remained largely positive. Auto rose 0.80%, Financial Services ex-Bank gained 1.37%, Financial Services advanced 0.66%, PSU Bank added 0.60% and Chemicals climbed 0.59%. On the other hand, Realty declined 0.84%, while FMCG and Media also traded lower.Broader markets were mixed. The Nifty 100, Nifty 200 and Nifty 500 traded marginally higher, while the Nifty Midcap 50, Midcap 100 and Smallcap 100 slipped in early trade. India VIX fell nearly 2% to 11.92, indicating easing volatility. Meanwhile, crude oil prices eased after recent gains, with Brent crude falling 0.98% to $88.16 per barrel and WTI crude declining 1.62% to $82.24, offering some relief on the inflation front.The rupee strengthened sharply at the opening bell, rising 0.3% to 95.3850 against the US dollar from the previous close of 95.68, supported by sustained foreign fund inflows and softer crude prices.Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said heightened volatility in technology stocks globally is prompting institutional investors to look for relatively stable markets such as India."A significant feature of recent stock market trends in countries like the U.S. and South Korea has been the unusually huge volatility in stock price movements. Tech stocks are witnessing huge volatility in response to quarterly results, expectations and unprecedented speculative trading," he said.Referring to South Korea, Vijayakumar noted that Samsung Electronics and SK Hynix, which together account for over half of the Kospi's market capitalisation, have been witnessing sharp swings, making the market increasingly volatile."Institutional investors don't like this kind of huge volatility, which might impact their performance. This may be one reason why FIIs have turned buyers in India in recent days," he said.According to Vijayakumar, India's relatively stable market, reasonable large-cap valuations and resilient economic outlook continue to attract overseas investors."During the last three days, FIIs have cumulatively bought equity worth Rs 7,360 crore. This FII buying, though not a distinct trend so far, has the potential to impart resilience to the market. Q1 results released so far indicate a revival of earnings growth momentum," he added.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Jul 31, 2026 09:31 IST