IT Slips as FMCG and Banks Drive the Recovery

Markets closed on a positive note today, with the Sensex settling at 74,303.16 and the Nifty at 23,224.15, clawing back a good chunk of yesterday's sharp losses. But the recovery was far from uniform, while consumption and banking names did the heavy lifting, IT stocks kept sliding, making TCS the standout loser of the session.

was the biggest drag on the Nifty, falling close to 3%, with Wipro, Tech Mahindra and Infosys also ending in the red. This extends a rough patch for the IT pack, which briefly looked like the market's safe haven earlier this week before reversing hard. FMCG and banking stocks carried the rally. ITC, Tata Consumer, Trent, SBI and Nestle India were among the top gainers, a rotation out of IT and into defensive, domestic-demand names. Defence stocks extended their losing streak to a fifth straight session, showing the earlier profit-booking in that sector hasn't fully played out yet. Market breadth stayed weak despite the index gains, more stocks fell than rose through the session, which suggests this bounce was driven by a handful of heavyweights rather than broad participation. The Fed decision loomed large all day. With markets pricing in a rate move and crude oil still elevated, investors stayed cautious even as headline indices moved higher.