Nifty slips 0.32% as IT selling outweighs metals and financials

Indian benchmarks extended their losing run as selling in technology stocks outweighed support from metals and financials. The pressure was concentrated in Infosys, HCLTech, Tata Consultancy Services and Tech Mahindra, while Hindalco, Tata Steel, Axis Bank, HDFC Life and ONGC were among the stocks providing support.

Market reports linked the IT weakness to a combination of higher US Treasury yields, elevated crude prices and renewed West Asia uncertainty. That explanation is an attribution by market participants, not an independently established causal finding. The resilience of metals and selected financial stocks meant the decline remained concentrated rather than broad-based; mid- and small-cap shares held up better than the benchmarks.

Foreign institutional investors were provisional net sellers of Rs 2,535.10 crore in Indian equities on August 17, while domestic institutions bought Rs 5,101.46 crore. The domestic buying provided a counterweight, but did not prevent the benchmark-heavy technology sell-off.

The stock pattern also explains the sector divergence. Metal names benefited from strength in Hindalco and Tata Steel, while financials drew support from Axis Bank and HDFC Life. In contrast, the decline in Infosys, HCLTech and TCS weighed on the index, and selling in Sun Pharma, Nestle India and ITC reinforced weakness in healthcare and consumer-facing groups.

The Reserve Bank of India said the special foreign-currency non-resident deposit swap window would close to deposits mobilised until August 31, a month earlier than previously planned. Eligible swaps can still be taken up with the RBI until September 11, while the facilities for external commercial borrowings and overseas foreign-currency borrowings remain open until December 31.

Market participants linked the rupee's weakness and the rise in government bond yields to concerns about the timing of dollar inflows and liquidity after the earlier closure. Reuters reported that Indian lenders were accelerating dollar loan and bond issuance, with bankers expecting at least $5 billion of fundraising over the following two weeks.

Finance Minister Nirmala Sitharaman said the government would soon set up a high-powered committee to examine banking-sector reforms. SEBI Chairman Tuhin Kanta Pandey said the closing auction session would remain in place while the regulator reviews concerns raised by market participants. The immediate market impact of both developments was not available.

The external backdrop remains unsettled. US stocks ended lower as the expiry of a US-Iran ceasefire increased supply concerns around oil; the US 10-year Treasury yield was reported at 4.728%. Asian markets were mixed in early trading, with South Korean shares stronger after a holiday while wider regional gains were limited. A softer dollar and higher gold prices pointed to continuing hedging demand, while the rise in crude and US yields remained a valuation and inflation concern for Indian equities.

For India, the combination matters through several channels: higher energy costs can widen the import bill and pressure the rupee, while higher global yields can reduce the relative appeal of emerging-market assets. Those are possible implications rather than a forecast of the next market move.

India's current account deficit widened to $3.1 billion in the April-June quarter of FY27 from $2.9 billion a year earlier, according to RBI data. The merchandise trade deficit increased to $85.7 billion from $68.9 billion as imports rose faster than exports. Higher oil, gas and agriculture-input costs were cited as contributors.

The July unemployment rate fell to 5.1% from 5.5% in June, government data showed, below a Reuters poll expectation of 5.4%. The data offer a better labour-market reading, but the wider trade gap leaves the economy more exposed to a sustained rise in energy costs. The next flash manufacturing and services PMI readings are due on August 21.

Voltas reported June-quarter revenue growth of 19% year-on-year, below the 28% growth expected in a CNBC-TV18 poll. Profit after tax rose 52% year-on-year to Rs 213 crore, but was below the Rs 217 crore street estimate. EBITDA margin improved 120 basis points year-on-year to 5.7%, below the 6.3% estimate. Management said it was targeting margins above 7% over the long term and expected recovery from the third or fourth quarter of the current financial year.

Ipca Laboratories reported revenue growth of 21% year-on-year to Rs 2,788.10 crore, EBITDA growth of 50% to Rs 637.94 crore and net profit growth of 72% to Rs 401.89 crore for the June quarter. The company raised FY27 revenue-growth guidance to 14% to 16% from 12% to 13% and consolidated EBITDA-margin guidance to 23% from 22%. The reported figures were ahead of street estimates, according to JM Financial.

Cochin Shipyard reported a 19.38% year-on-year decline in consolidated net profit to Rs 151 crore for the June quarter. Other company developments included Sonata Software's appointment of Hariprasad Rebala as chief AI officer, UltraTech Cement's appointment of Jayant Dua as managing director and director, and Bharti Airtel's announcement that Shabnam Sinha will succeed Sunil Bharti Mittal as chairperson of Airtel Payments Bank from October 1.

The primary market remains active. Sunshine Pictures is raising Rs 282.14 crore through a fresh issue of Rs 172.80 crore and an offer for sale of Rs 109.34 crore. Lalithaa Jewellery Mart's Rs 1,700 crore issue, which opened on August 17, closes on August 19, while Horizon Industrial Parks' Rs 2,600 crore issue closes on August 19.

Dhoot Transmission's listing offers the clearest immediate secondary-market reference among the day's IPO events, with the stock debuting at a premium to its issue price. The material does not identify any bulk or block deals dated August 17. Attention during the session is likely to remain divided between new-issue demand, oil-sensitive sectors and the market's response to the RBI's liquidity decision.