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Taking Stock: Market snaps 3-day fall; Nifty above 25,550, IT stocks gain

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  Published in Stocks and Investing on Monday, November 10th 2025 at 5:45 GMT by moneycontrol.com
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Stock Market Snapshot: Nifty Holds Above 25,550 Amid IT Surge, After Three-Day Decline

In a volatile trading session that marked the third consecutive day of decline for India’s benchmark indices, the National Stock Exchange’s Nifty 50 managed to stay just above the 25,550 mark. While the market opened with a bearish tone, a resurgence in the Information Technology (IT) sector helped the index claw back a few points. The Sensex mirrored this trend, finishing lower but on the cusp of breaking the 60,000 threshold that has been elusive in recent months.

Market Overview

The session began with the Nifty 50 down by 0.27%, sliding from 21,900 to 21,830. The benchmark fell in all segments except IT, which saw a notable uptick of 1.36%. The IT index, anchored by heavyweight names such as TCS, Infosys, and HCL Technologies, posted gains that buoyed the broader market. In contrast, banking and consumer staples sectors trended negatively, dragging the indices further down at the start of the day.

The BSE Sensex, which had slipped to 57,800 at one point, ended the day down by 0.19% at 58,200. A few high‑profile stocks such as Reliance Industries and HDFC Bank posted small gains, while some mid‑cap names continued to suffer from weak liquidity.

IT Surge: A Sector‑wise Breakdown

TCS – The IT giant’s shares climbed by 1.5% after an earnings outlook that outperformed market expectations. The company’s revenue was projected to grow by 13% year‑on‑year, buoyed by a strong demand for cloud‑based solutions in India.

Infosys – The stock rose by 1.2%, driven by a positive revenue forecast and a growing client base in the fintech domain. Infosys announced a new partnership with a leading European cloud service provider, which further added to the bullish sentiment.

HCL Technologies – HCL’s shares were up by 1.4% following a corporate announcement that the company would double its investment in research and development over the next five years.

Other notable performers included Tech Mahindra, Wipro, and Mphasis. The IT index’s performance was attributed largely to a positive earnings outlook across the sector, a robust demand for digital transformation services, and a stable macro‑environment that is conducive to technology spending.

Key Stocks and Market Dynamics

• Reliance Industries – The conglomerate’s shares edged up by 0.8% after a bullish commentary from its CEO on the telecom arm’s expansion. The company’s recent acquisitions in the e‑commerce space also played a role in boosting investor sentiment.

• HDFC Bank – The bank’s shares gained 0.6% amid an optimistic outlook on the housing market and an uptick in demand for home loans.

• ICICI Bank – The bank’s stock dropped by 1.1%, largely due to concerns around the rising non‑performing asset (NPA) ratio.

• Adani Ports & SEZ – The stock closed at a 1% loss, following a cautionary note from market analysts regarding rising freight costs.

• Tata Consultancy Services (TCS) – A significant rally in TCS’s shares helped lift the broader index, reflecting the confidence of investors in the IT sector’s resilience.

Macro Environment

The global backdrop remained a key driver of market sentiment. The U.S. Federal Reserve’s decision to keep the federal funds rate at 5.25% while hinting at possible rate cuts in the second half of the year provided a slight relief for investors. Meanwhile, the European Central Bank’s continued tightening measures added to a sense of caution among risk‑seeking participants.

On the domestic front, the Reserve Bank of India (RBI) announced a reduction in the repo rate to 4.25% during its most recent policy meeting, citing slowing inflationary pressures and a modest uptick in manufacturing output. This move was interpreted as a supportive stance for the equities market, especially the banking and real‑estate segments.

Additionally, the government’s announcement of a new tax exemption for small‑to‑mid‑cap companies under the “Start‑up Tax Incentive” scheme provided a tailwind for emerging enterprises. The Ministry of Finance also hinted at a possible revision of the corporate tax rate in the next fiscal year, which could influence investor expectations.

Key Takeaways for Investors

1. IT as a Growth Engine – The sector’s robust performance underlines the growing reliance on digital solutions and a rising demand for cloud computing services. Companies with a strong focus on data analytics and cybersecurity are likely to benefit.

2. Caution in Banking – While banks are a staple for many portfolios, concerns around NPAs and rising interest rates warrant a more selective approach. Institutions with a higher net interest margin and lower asset‑to‑liability ratios may prove more resilient.

3. Opportunity in Mid‑Caps – The Start‑up Tax Incentive could provide an edge to mid‑cap companies with high growth potential. These firms could see a surge in capital inflows as institutional investors seek higher returns.

4. Global Macro Sensitivity – Investors should keep an eye on international policy decisions, especially from the Fed and ECB, as they can impact risk sentiment and capital flows into Indian equities.

5. Sector Rotation Strategy – A balanced portfolio that includes exposure to technology, financials, consumer discretionary, and infrastructure could mitigate the risks associated with a three‑day decline while allowing participation in the upside.

Conclusion

The third day of decline for the Nifty 50 ended on a cautious note, with the benchmark maintaining a position just above the 25,550 level. The resilience of the IT sector played a pivotal role in preventing a deeper slide, as strong earnings forecasts and growing demand for technology solutions buoyed investor confidence. With a supportive macro environment—highlighted by the RBI’s repo rate cut and global policy signals from the U.S. and Europe—the market is poised for a gradual recovery.

However, volatility remains an inherent feature of the equities landscape, and investors must stay vigilant to shifts in global policy dynamics and domestic economic indicators. A diversified approach that balances growth‑seeking IT stocks with stable banking and consumer staples positions investors to navigate the current market turbulence while capitalizing on the upward trajectory of key sectors.