Nifty IT Gains on Value Buying & Rupee Weakness ; Meta Cuts Jobs Amid Massive AI Investment Push – Paper by Pocketful

May 18, 2026

HFCL (-5.54%): Stock declined despite the company, through its overseas subsidiary, securing an export order worth $11.07 million (₹106 crore) from an international customer for optical fiber cable supply.
Godfrey Phillips India (-4.54%): Stock declined despite Q4FY26 net profit surging 86% YoY to ₹521 crore, revenue rising 85%, and the company announcing a ₹3 dividend, amid profit booking.
Power Grid Corporation of India (-3.04%): Stock declined after Q4FY26 revenue fell 5% YoY to ₹11,666 crore, EBITDA dropped 11%, and margins contracted to 78%. Higher expenses and weak operational performance weighed on sentiment despite PAT rising 9.7% to ₹4,546 crore aided by deferred tax adjustments.
Jain Resource Recycling (-18.14%): Stock declined sharply despite strong Q4FY26 earnings, with profit rising 26% YoY and revenue surging 76%, as investors turned cautious over stretched valuations and booked profits after the recent rally.

IT | Nifty IT (+2.43%): Index extended gains for the second straight session, rising nearly 4% in two days, led by Infosys, Tech Mahindra, and Persistent Systems. Investors bought beaten-down IT stocks amid rupee weakness, easing global growth concerns, and expectations of potential buybacks.
Pharma | Nifty Pharma (+0.52%): Index traded higher with 9 gainers and 11 losers, supported by selective buying in pharmaceutical stocks despite mixed market breadth across the sector.
Media | Nifty Media (-2.24%): Index traded lower amid selling pressure in Zee Entertainment, Saregama India, and Sun TV Network. Media shares declined after advancing in the previous two trading sessions, triggering profit booking.
PSU Bank | Nifty PSU Bank (-1.92%): Index declined for the second consecutive session with all constituents trading in the red, amid profit booking, weak market sentiment, and concerns over rising bond yields impacting banking stocks.

Technical Level: Nifty opened with a gap-down start and witnessed sharp selling pressure, slipping towards the 23,320 support zone. The index later rebounded strongly from lower levels, triggering an upside rally towards 23,690 resistance and eventually closed near last week’s closing level, indicating a mildly positive undertone despite early weakness.
Advance-Decline Ratio: Market Breadth remained weak with 940 advances against 2,381 declines across broader markets.
The Big Picture: Meta plans fresh layoffs this week, cutting nearly 8,000 jobs as the company aggressively increases AI investments and raises 2026 capex guidance to as much as $145 billion. The move highlights Big Tech’s growing focus on efficiency, automation, and AI-driven expansion.
FII/DII Activity (May 18, 2026): DIIs remained net buyers at ₹2,682 crore, while FIIs bought equities worth ₹2,814 crore, reflecting positive institutional sentiment despite volatile market conditions.

IPO Corner: NFP Sampoorna Foods SME IPO opened for subscription today, with investors closely tracking demand and grey market sentiment.
Macro: Japan GDP Growth Rate QoQ Prel (Q1) & UK Unemployment Rate (Mar) data releasing tomorrow may provide cues on global economic and labour market trends.
Index Watch: Nifty opened on a negative note but recovered sharply towards closing, led by strength in IT and Pharma stocks amid buying at lower levels and positive institutional inflows. The index closed near last week’s closing level, indicating a positive undertone despite volatility. FIIs and DIIs remained net buyers, supporting market sentiment. Immediate resistance is seen at 23,900, while support stands near 23,300.

Resilient - The ability to recover quickly from setbacks, pressure, or difficult market conditions. In investing, resilient stocks or markets bounce back strongly despite volatility or economic uncertainty. The ability to recover quickly from setbacks, pressure, or difficult market conditions. In investing, resilient stocks or markets bounce back strongly despite volatility or economic uncertainty.

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