Nifty below 24,850; IT shares decline

The frontline indices traded with modest losses in mid-morning trade due to profit booking and weak index heavyweights, despite easing U.S.-China tensions. The Nifty traded below the 24,850 mark. IT stocks fell following gains in previous trading sessions, as profit booking took hold.

At 11:30 IST, the barometer index, the S&P BSE Sensex, declined 469.09 points or 0.58% to 81,950.78. The Nifty 50 index slipped 129.30 points or 0.52% to 24,801.00.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.59% and the S&P BSE Small-Cap index added 1.04%.

The market breadth was strong. On the BSE, 2,490 shares rose and 1,154 shares fell. A total of 187 shares were unchanged.

Buzzing Index:

The Nifty IT index declined 1.27% to 37,797.95. The index gained 6.70% in the past trading session.

Infosys (down 2.53%), Oracle Financial Services Software (down 1.8%), HCL Technologies (down 1.77%), Wipro (down 1.5%), Tata Consultancy Services (down 1.27%), Mphasis (down 0.87%), and Persistent Systems (down 0.38%) advanced.

On the other hand, LTIMindtree (up 1.21%) ,Tech Mahindra (up 1.1%) and Coforge (up 0.4%) edged higher.

Stocks in Spotlight:

Power Mech Projects soared 2.48% after the firm said that it has secured an order worth Rs 971.98 crore from Telangana Power Generation Corporation (TSGENCO) for the 5x800 MW Yermarus Thermal Power Station (YTPS) project.

Aarti Surfactants hit an upper circuit of 10% after the company's consolidated net profit zoomed 109.03% to Rs 9.72 crore in Q4 FY25 as against Rs 4.65 crore posted in Q4 FY24. Revenue from operations surged 27.43% year on year to Rs 202.05 crore in the quarter ended 31 March 2025.

HFCL rose 0.46%. The company announced that it has secured a purchase order worth Rs 157 crore for the supply of various types of optical fiber cables under the BharatNet Phase III Project in the West Bengal Telecom Circle.

Global Markets:

Asian stocks traded mixed on Tuesday, following a massive rally on Wall Street after the U.S. and China agreed to a trade deal.

In the U.S., major indices posted significant gains. The Dow Jones Industrial Average rose 2.81%, the S&P 500 advanced 3.26%, and the Nasdaq Composite gained 4.35%, with technology stocks ' particularly those with exposure to China, such as Apple and Tesla ' leading the way.

The surge in investor confidence followed a joint announcement on Monday that the U.S. and China had agreed to mutually reduce tariffs on each other's goods for an initial 90-day period. Under the agreement, the U.S. will reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its retaliatory tariffs from 125% to 10%. China also committed to easing certain non-tariff measures, including restrictions on rare earth exports.

The agreement was the result of intensive negotiations held over the weekend in Geneva, where both sides reported substantial progress. A joint statement emphasized the importance of developing a sustainable, long-term, and mutually beneficial economic and trade relationship.

This development marks a significant de-escalation in the prolonged trade conflict that began with the imposition of sweeping tariffs by the United States. The trade tensions had previously disrupted global supply chains, heightened market volatility, and raised concerns over a potential global recession.

However, despite the positive momentum, investor focus is now shifting toward upcoming U.S. inflation data, with the Consumer Price Index (CPI) report due later Tuesday.

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