Benchmarks Fall as IT Slump Offsets Broader Market Strength

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

April 22, 2026 at 11:42 AM IST

Indian equities ended lower on Wednesday, snapping a three-day winning streak, as weak guidance from HCL Tech triggered a sharp selloff in IT stocks and weighed on benchmark indices. The Nifty 50 declined 0.81% to 24,378.10, while the BSE Sensex fell 0.95% to 78,516.49.

The IT sector emerged as the biggest drag after HCL Tech reported subdued earnings and issued weaker-than-expected FY27 growth guidance, pulling the Nifty IT down nearly 4%. Financial services and auto stocks also underperformed, while broader markets remained resilient, with mid-cap and small-cap indices gaining 0.2% and 1.1%, respectively.

Investor sentiment also remained cautious amid uncertainty surrounding US-Iran negotiations. Although Donald Trump extended the ceasefire with Iran, the continued blockade of the Strait of Hormuz and stalled diplomatic engagement kept geopolitical risks elevated. Brent Crude remained above $100 per barrel, adding to concerns around inflation and global growth, which pressured equities globally.

Top Movers of the Day
HCL Technologies declined 11.0% to ₹1,283 after weak Q4 earnings and muted FY27 guidance as brokerage downgrades triggered heavy selling pressure.

Infosys declined 4.0% to ₹1,258 tracking weakness across IT stocks on concerns over slower discretionary spending weighed on sentiment.

Tech Mahindra declined 2.5% to ₹1,463 as HCL Tech’s weak outlook dragged the broader IT sector lower and investors turned cautious on earnings visibility. The company announced a final dividend of ₹36 per share and reported a 16% YoY rise in Q4 profit, which supported investor confidence.

Nestlé India gained 1% to ₹1,394 after strong Q4 results and robust profit growth and positive brokerage commentary supported buying.

BEML gained 3.5% to ₹1,830 after securing a ₹5.9 billion order from the Ministry of Defence, which boosted sentiment around defence-linked stocks.

Tata Elxsi declined 6.4% to ₹4,352 after Q4 results on concerns over delayed deal ramp-ups weighed on investor sentiment. The company’s Q4FY26 results disappointed investors, leading to sharp selling pressure.

Trent gained 2.0% to ~₹4,409 ahead of its board meeting on bonus issue consideration and corporate action expectations supported the stock.

Central Mine Planning and Design Institute declined nearly 3.27% to ₹179 after the company reported its Q4FY26 results, which triggered selling pressure in the stock.

PNC Infratech gained 6.9% to ₹222.75 as strong buying interest continued after the stock rallied sharply intraday on improving infrastructure sector sentiment.

Amara Raja Energy & Mobility gained over 16% to ₹905 after reports indicated that the company plans to begin bulk EV cell production next year, strengthening optimism around its EV business.

Hindustan Unilever gained 3.0% to ₹2,380 as investors continued to accumulate FMCG stocks amid defensive buying in a weak broader market.

Jaiprakash Power Ventures gained 3.4% to ₹19.64 as continued buying interest in power stocks supported the counter despite weak benchmark indices.

Persistent Systems declined 4.5% to ₹5,096.65 as weakness in the IT sector and earnings-related concerns weighed on sentiment.

Futures & Options
Nifty April 2026 futures closed at 24,385, trading at a marginal premium of 1 point to the spot Nifty 50 close of 24,378.10, indicating a cautious undertone in the derivatives segment following the sharp correction in equities. The index declined 0.81% or 198.50 points in the cash market, largely dragged down by weakness in IT stocks. Volatility increased, with India VIX rising 3.77% to 18.20, reflecting elevated uncertainty amid earnings-related pressure and geopolitical concerns. In the F&O segment, HCL Technologies, HDFC Bank and Infosys were the most actively traded stock futures, highlighting continued focus on IT and banking heavyweights.

The April series is set to expire on 28 April 2026, with traders likely to remain cautious as markets assess the impact of weak IT guidance, elevated oil prices and ongoing developments in West Asia.

Bonds
India's government bond yields moved higher on Wednesday as persistent geopolitical tensions in West Asia and elevated crude oil prices weighed on investor sentiment. The benchmark 6.48% 2035 bond yield rose to 6.9225%, compared with 6.8894% in the previous session.

Investors remained cautious despite Donald Trump extending the ceasefire with Iran indefinitely, as progress in diplomatic talks remained limited and the Strait of Hormuz continued to face disruptions. Brent Crude staying above $90 per barrel has reinforced concerns around inflation and growth, with the RBI previously warning that a 10% rise in oil prices above $85 could increase inflation by 50 basis points and reduce economic growth by 15 basis points.

Forex
Indian rupee weakened for a third consecutive session on Wednesday as elevated geopolitical tensions in West Asia and rising crude oil prices continued to weigh on sentiment. The currency declined 0.3% to close at 93.7950 against the US dollar, hovering near its weakest level in nearly three weeks.

Despite the US extending its ceasefire with Iran indefinitely, reports of attacks on container ships in the Strait of Hormuz kept markets cautious and pushed Brent Crude back above $100 per barrel. The spike in oil prices pressured regional equities and currencies, with concerns resurfacing around India’s inflation outlook and import bill.

Crypto
Crypto markets moved sharply higher on Wednesday, with total market capitalisation rising by nearly $64 billion as renewed institutional demand boosted sentiment. The overall crypto market cap climbed more than 2% over the past 24 hours to reach approximately $2.7 trillion, while trading volumes increased to around $112.2 billion.

Bitcoin gained 2.3% to trade near $78,077, extending its recent rally amid improving risk appetite and stronger inflows into digital assets. Among major altcoins, Ethereum, Solana and Dogecoin emerged as key outperformers, while XRP rose nearly 1% to $1.45 and continued to lead gains over the past week among the top ten cryptocurrencies.

US Stock Futures
US stock futures higher on Wednesday after Donald Trump announced an extension of the US ceasefire with Iran, improving risk sentiment across global markets. Futures on the S&P 500 gained 0.5%, while Nasdaq-100 futures advanced 0.7% and Dow Jones Industrial Average futures rose 214 points, or 0.4%.

Investor sentiment improved after Trump extended the two-week ceasefire following the close of Tuesday’s session, citing instability within Tehran’s government. The development eased concerns over an immediate escalation in West Asia, supporting appetite for equities and other risk assets.

US Treasury Notes
Yields on US Treasury were largely unchanged in Wednesday’s pre-market trade as investors balanced easing geopolitical tensions with expectations of higher interest rates for longer. The benchmark 10-year Treasury yield held near 4.297%, while the policy-sensitive 2-year yield remained around 3.777%.

Markets took comfort from the indefinite extension of the US-Iran ceasefire, which reduced immediate concerns around energy-driven inflation. However, stronger-than-expected March retail sales data reinforced expectations that the Federal Reserve could maintain a restrictive policy stance for an extended period, limiting any sharp decline in yields.

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