Indian equity benchmarks continued their downward trend on Tuesday, June 30, 2026, with the information technology (IT) sector experiencing significant losses. The 30-share BSE Sensex fell 249.70 points (0.33%) to close at 76,478.67, while the NSE Nifty50 index declined 80.50 points (0.34%) to settle at 23,865.75.
Major companies contributing to the Sensex's decline included Infosys Ltd, ICICI Bank, Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), State Bank of India (SBI), ITC Ltd, Axis Bank Ltd, HCLTechnologies Ltd, Hindustan Unilever Ltd (HUL), and Larsen & Toubro Ltd (L&T). In contrast, the broader indices showed resilience, with the Nifty Midcap100 rising 0.37% and the Nifty Smallcap100 climbing 1.02%.
Why IT Stocks Tumbled
The Nifty IT sub-index plunged 2.73% during Tuesday's trading. According to Ajit Mishra, SVP (Research) at Religare Broking, ongoing concerns about potential higher interest rates in the United States heavily influenced technology stocks. This led to widespread selling across the IT sector, driven by fears that elevated borrowing costs could delay discretionary spending by global clients.
Ankur Punj, MD & Business Head at Equirus Wealth, added that domestic indices are currently factoring in several challenges for the IT sector, including slower revenue growth, diminished pricing power, uncertainty surrounding AI's impact on staffing, and softer margins over the next 12–24 months. Punj noted that investors are assigning lower valuation multiples to the sector rather than anticipating a collapse in earnings. He expects management commentary to remain cautious, with deal wins potentially improving but their conversion into actual revenue remaining slow. Earnings downgrades also pose a significant risk.
Nifty Outlook
From a technical standpoint, Sachin Gupta, VP- Technical Research at Choice Broking, provided insights into the Nifty50's immediate levels. He stated that immediate support for the index is positioned within the 23,650–23,700 zone, while resistance is observed in the 24,000–24,050 range. In the derivatives segment, notable call writing was concentrated at the 23,900 and 24,000 strikes, suggesting immediate resistance near the 24,000 mark. Conversely, put writing was focused at 23,900 and 23,800 levels, indicating support around these lower strikes.