Nifty Recovers Despite Global Jitters; IT Rally Steals the Spotlight - Paper by Pocketful

Jul 13, 2026

NTPC (+2.09%): Shares surged after the board approved a ₹20,456.70 crore investment for the 1,600 MW Lara Super Thermal Power Project Stage III.
LTM (+2.16%): Shares advanced after Q1 FY27 net profit rose 17% YoY to ₹1,466 crore, while revenue increased 18% to ₹11,608 crore.
Lux Industries (+2.55%): Shares gained after the Lux Cozi Group laid the foundation stone for a new ₹600 crore manufacturing facility in Dankuni, West Bengal, set to become one of Asia’s largest garment manufacturing hubs.
RITES (+0.01%): Shares traded flat after the company, in a consortium, secured a ₹79.22 crore work order from Patna Metro Rail Corporation for consultancy services for the Patna Metro Rail Construction Project.

Nifty IT (+3.59%): The index surged to a one-month high, led by TCS, Infosys, and HCL Technologies, as TCS’ strong Q1 FY27 results, robust long-term deal wins, and a new multi-year partnership with ABB boosted investor sentiment, while investors also remained optimistic ahead of HCL Technologies’ Q1 FY27 earnings.
Nifty Media (+2.09%): The index surged as 8 of its 10 constituents closed in the green, led by broad-based buying in media and entertainment stocks amid improved market sentiment, while only 2 stocks ended lower, limiting overall gains.
Nifty FMCG (-1.02%): The index declined sharply as FMCG counters came under pressure amid concerns over elevated crude oil prices and slowing global growth, with losses in ITC, Nestlé India, and Hindustan Unilever weighing on the sector.
Nifty India Defence (-0.75%): The index declined as 16 of its 18 constituents closed in the red, reflecting broad-based profit booking across defence stocks, while only 2 stocks ended higher, limiting the overall downside.

Technical Level: Nifty opened with a sharp gap-down, establishing support near 24,000 at the start of the session. The index staged a strong recovery and rallied through the first half, extending gains into the second half before facing resistance near 24,260. It then witnessed a minor pullback and consolidated in a narrow range around that level until the closing bell.
Advance-Decline Ratio: Market breadth remained positive, with 1,772 stocks advancing against 1,555 declining, indicating selective buying interest despite volatility, as advancing stocks marginally outpaced decliners.
The Big Picture: Global AI demand remained robust as TSMC, the world’s largest contract chipmaker, reported a 67.9% year-on-year surge in June revenue, exceeding expectations on strong AI chip demand from customers such as Nvidia, Apple, and AMD. The upbeat performance reinforced optimism around the semiconductor sector ahead of TSMC’s Q2 earnings, highlighting continued strength in the global AI-driven technology cycle.
FII/DII Activity (July 13, 2026): FIIs remained net sellers with outflows of ₹3,062 crore, while DIIs provided support by remaining net buyers with inflows of ₹2,172 crore.

IPO Corner: SBI Funds Management IPO and Alpine Texworld IPO open for subscription on July 14, with both mainboard issues set to close on July 16, making them the key primary market offerings to watch this week.
Macro: China Balance of Trade (Jun) & USA Inflation Rate YoY (Jun) data scheduled for release tomorrow.
Market Watch: Despite opening with a sharp gap-down amid escalating Middle East tensions, Indian markets recovered strongly and ended largely unchanged, outperforming several Asian peers. Optimism around IT earnings, led by LTIMindtree and TCS, supported sentiment, while investors now await HCLTech’s Q1 FY27 results for further direction. Technically, Nifty’s next resistance is seen near 24,480, while immediate support is placed around 24,000.

Convexity

Meaning: A measure of how a bond’s price sensitivity changes as interest rates move, improving the accuracy of duration-based price estimates.

Example: Bonds with higher convexity generally perform better during significant interest rate movements.

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