Trent Plunges 12% After Q1 Update; IT Stocks Rally on Renewed Buying - Paper by Pocketful

Jul 07, 2026

Trent (-12.44%): Shares plunged after its Q1 FY27 business update showed 19% YoY revenue growth, as the performance fell short of investor expectations.
RITES(+8.92%): Shares surged after securing a $35.82 million order from Volantis Asset Finance for supplying and commissioning 4,000 HP diesel-electric locomotives in South Africa.
Kalyan Jewellers (-6.95%): Shares declined despite reporting double-digit Q1 growth, as its business performance lagged larger rival Titan and fell short of elevated investor expectations.
Info Edge (India) (+13.10%): Shares jumped after Q1 standalone billings rose 14.4% YoY to ₹737 crore, driven by strong growth in recruitment and real estate businesses.

Nifty IT (+2.43%): The index emerged as the top sectoral gainer, led by Infosys, TCS, and HCL Technologies. Renewed buying in large-cap IT stocks, easing crude oil prices, and a reversal in FPI selling boosted investor sentiment and supported the rally.
Nifty Consumer Durables (+0.89%): The index advanced, with 7 gainers and 8 losers, led by Titan Company. Positive investor sentiment, expectations of healthy quarterly earnings, improving consumer demand, and sustained buying interest in electronics and discretionary stocks supported the sector.
Nifty India Defence (-1.65%): The index declined, losses in Bharat Electronics, HAL, and Solar Industries. as investors booked profits following the previous session’s rally, while Cochin Shipyard’s discounted OFS added selling pressure.
Nifty Realty (-1.58%): The index traded lower in a range-bound market, with 1 gainer and 9 losers, as profit booking after recent gains weighed on the sector.

Technical Level: Nifty opened flat and moved higher during the morning session, facing resistance near 24,530. The index reversed direction in the second half, forming lower lows and breaking below its opening level before finding support near 24,350 at the close.
Advance-Decline Ratio: Market breadth remained negative, with 1,188 stocks advancing against 2,083 declining, indicating broad-based selling pressure and weak investor sentiment across the market.
The Big Picture: Geopolitical tensions escalated after Ukrainian drones struck Russia’s largest oil refinery in Omsk, marking one of Kyiv’s deepest attacks into Russian territory. The development highlighted Ukraine’s growing long-range strike capabilities and raised fresh concerns over the Russia-Ukraine conflict and global energy supply risks.
FII/DII Activity (July 07, 2026): DIIs sold ₹383 crore, while FIIs bought ₹393 crore, indicating renewed foreign buying interest as domestic institutions remained net sellers.

IPO Corner: Kusumgar IPO opens tomorrow, offering investors a fresh opportunity to participate in the primary market.
Macro: USA FOMC Minutes & API Crude Oil Stock Change (Jul/03) data scheduled for release tomorrow.
Market Watch: Tuesday’s session showed that beating expectations matters more than strong numbers, as Trent and Kalyan Jewellers fell despite healthy growth, while Info Edge, Titan, and Swiggy gained on positive developments. IT stocks recovered ahead of TCS results, though Thursday remains a key test. Weak market breadth and Nifty’s weekly expiry masked broader selling pressure. Investors should avoid chasing momentum, prioritise quality, and carefully track Q1 earnings.

Resilience

Meaning: The ability to recover quickly from setbacks, challenges, or difficult situations.

Example: Despite market volatility, the company’s resilience helped it deliver strong long-term returns.

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