Indian stock markets erased early session losses on Monday. The Sensex rose 107 points to close at 81,107, while the Nifty 50 added 58 points to finish at 25,045.
Information technology stocks led the losses on Monday. The Nifty IT index dropped over 1 percent.
Heavyweight IT companies fell following reports that a bipartisan US Senate bill could fast-track the expansion of AI data centres and power infrastructure. Investors worried that faster US AI infrastructure expansion could increase competition for Indian firms in AI-led technology services and data centre work.
Mphasis led sector losses with a drop of around 3 percent. HCL Technologies, Infosys, Coforge, and TCS fell between 1 percent and 2 percent.
Market performance stayed mixed on Monday. SBI, Trent, L&T, and NTPC added around 2 percent each on the Sensex.
HCL Tech, Tata Steel, UltraTech Cement, Bajaj Finance, Tech Mahindra, ITC, and Infosys shares dropped around 2 percent each. The National Stock Exchange saw 1,629 advances against 1,959 declines, while 110 stocks remained unchanged.
International brokerage firm Citi Research raised its Nifty target to 28,000 points by end-2027. Improving foreign institutional investor participation and corporate earnings strengthened expectations of an upgrade to the financial year 2027 earnings outlook.
Ponmudi R, CEO of Enrich Money, noted that investors are monitoring global AI trade concerns and Thursday’s Consumer Price Index data for directional cues.
Anand James, Chief Market Strategist at Geojit Investments, identified 24,860 to 24,775 as the downside marker for the market. He indicated that as long as the market remains above that level, upside attempts may be expected aiming at the 25,400 to 25,700 February congestion band, while an inability to hold above 24,775 could call for 24,400.
Anand James, Chief Market Strategist at Geojit Investments, said, “We will keep the 24,860-24,775 as the downside marker, as long as above which, upside attempts may be expected, eying 25,400-25,700, February's congestion band.”