Nifty Holds Above 24000 as Infrastructure Gains Offset IT Weakness

Mid-Market Snapshot

• Bias: Nifty and Sensex trade higher with Nifty up 0.67% and Sensex up 0.71%.
• Index Move: Nifty is up 0.67% and Sensex is up 0.71%.
• Breadth: Market breadth is mixed with top gainers including Asian Paints and top losers including Tech Mahindra.
• Key Intraday Shift: IT sector pressure from KPIT Technologies decline contrasts with infrastructure strength from RITES gains.
• Main Driver: KPIT Technologies slumped 16.2% on European OEM concerns while RITES gained 13.8% on new orders.

What Is Driving The Move

• European OEM Pullback Impacts Tech Sector: KPIT Technologies shares slumped 16.2% following a weak business update citing revenue declines from European OEMs, which dragged Tech Mahindra down 2.8% and pressured the broader IT sector.
• Infrastructure Project Awards Boost Engineering: RITES Ltd gained 13.8% after securing a Rs 175 crore project management consultancy order and signing an MoU for logistics infrastructure, driving strength in the engineering and capital goods sector.
• Reliance Power Surges on AI Strategy Shift: Reliance Power surged 12.8% after announcing a strategic pivot to incorporate AI and new-age technology activities, snapping a four-day losing streak and lifting sentiment on strategic announcements.

Participation And Market Structure

Participation is mixed with defensive sectors and infrastructure stocks leading gains while IT names face selling pressure; Asian Paints and RITES are providing support while KPIT Technologies and Tech Mahindra are dragging the index.

Sectors in Focus

• Information Technology: The sector is under pressure as KPIT Technologies slumped 16.2% on European OEM concerns, dragging peers like Tech Mahindra down 2.8%.
• Infrastructure and Engineering: This sector is showing strength with RITES Ltd gaining 13.8% following new project awards and logistics MoUs.
• Building Materials and Consumer Staples: Defensive resilience is visible as Asian Paints Ltd gained 3.1% amid broader market rotation.

Stocks in Focus

• KPIT Technologies (KPITTECH: KPIT Technologies shares fell 17% after the company warned of a 1% YoY revenue decline for Q1 FY27 due to sudden revenue drops from European OEMs.
• Reliance Power (RPOWER: Reliance Power share price surged over 18% after announcing a strategic pivot to incorporate AI and new-age technology activities through renamed subsidiaries.
• RITES Ltd (RITES: RITES secured a Rs 175 crore project management consultancy order from Babasaheb Bhimrao Ambedkar University for campus infrastructure development.
• Asian Paints (ASIANPAINT: Asian Paints stock declined by -0.96% over the last week, with a trading volume of 1,821,479 shares.
• Tech Mahindra (TECHM: Tech Mahindra shares declined 2.8% in mid-session, with the company collaborating with Microsoft on an advanced Network Digital Twin solution for 5G monetization.

Mid-Session Takeaway

The session is characterized by a rotation where infrastructure and strategic AI plays offset IT sector weakness, keeping indices above key psychological levels.

Bottom Line

Nifty and Sensex are trading higher as infrastructure gains and Reliance Power's surge counterbalance significant losses in the IT sector.