Now Reading: Indian IT stocks rally, markets flat amid South Korea crash
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Indian IT stocks rally, markets flat amid South Korea crash
Indian markets shrugged off a global semiconductor sell-off on Tuesday, with the Nifty 50 closing nearly flat at 23,985, down just 0.04%. In contrast, South Korea's KOSPI plunged 11% and Japan's Nikkei…
The Story in Brief
Indian markets shrugged off a global semiconductor sell-off on Tuesday, with the Nifty 50 closing nearly flat at 23,985, down just 0.04%. In contrast, South Korea's KOSPI plunged 11% and Japan's Nikkei fell 4%. Homegrown IT stocks surged, with the Nifty IT index rallying 3.3% led by Coforge which jumped 10% on 33% year-on-year revenue growth. FMCG stocks dragged, with Hindustan Unilever falling 7% on weak earnings.
Easing West Asia tensions and falling crude prices provided support. The rupee strengthened to a one-week low of Rs 95.78 against the dollar. Looking ahead, markets await US Fed and Bank of Japan policy decisions, and earnings from Asian Paints and Adani Enterprises.
The Indian Opinion
The narrative that Indian markets are decoupled from global turmoil is tempting, but the selective rally in IT stocks while FMCG and energy lag shows domestic vulnerabilities persist. The real test will be whether IT's AI-driven growth can withstand a global slowdown if Fed rate hikes continue. Watch the rupee's support at Rs 95.40-60, if it breaks, the decoupling story weakens.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
