IT Resilience Battles Geopolitical Storm: Nifty and Sensex Eke Out Marginal Gains Amid FII Selling — July 13, 2026

Market Snapshot

The Indian equity benchmarks witnessed a highly volatile session on July 13, 2026, recovering from a deep morning plunge to end nearly flat. The BSE Sensex, which at one point tanked over 700 points, clawed back to settle at 77,616.40, up 47.01 points or 0.06%. Similarly, the NSE Nifty 50 eked out a marginal gain of 4.10 points, or 0.02%, to close at 24,211.00.

The recovery was primarily driven by a spectacular rally in the IT sector, led by Tata Consultancy Services (TCS) following its robust Q1 FY27 results. However, broader market sentiment remained cautious as global headwinds, particularly the spike in crude oil prices, capped the upside.

Institutional Flows: Cash Market

Provisional data for the day revealed a clear tug-of-war between foreign and domestic institutional investors. Foreign Institutional Investors (FIIs) were aggressive sellers, while Domestic Institutional Investors (DIIs) provided the necessary cushion to prevent a sharper collapse.

• Foreign Institutional Investors (FIIs): Net sellers of ₹3,062.27 crore.
• Domestic Institutional Investors (DIIs): Net buyers of ₹2,171.70 crore.
• Combined Net Flow: A net outflow of ₹890.57 crore from the cash segment.

Derivatives Market Activity

The derivatives segment continued to dominate market activity, with the India VIX—the market’s "fear gauge"—spiking nearly 10% during the day to hover around 14.34. This surge reflected heightened investor anxiety regarding the geopolitical situation in the Middle East.

• Options trading accounted for a significant portion of the day's turnover, as traders sought hedges against potential supply chain disruptions.
• Nifty Bank saw selective buying in the futures segment, helping the index settle at 58,131.45, a gain of 0.15%.
• High volatility in crude oil prices led to increased activity in energy-related derivatives, as Brent crude jumped over 4% to cross the $79 per barrel mark intraday.

Key Drivers and Outlook

The primary driver of the early-morning sell-off was the escalating tension between the United States and Iran, coupled with Tehran's announcement regarding the closure of the Strait of Hormuz. This geopolitical friction sent crude oil prices soaring, which inherently pressures the Indian rupee and inflates the country's import bill.

• IT Sector Outperformance: TCS surged over 5% after reporting better-than-expected earnings and a major AI deal, dragging peers like HCL Tech and Infosys higher.
• Commodity Pressure: Metal and FMCG stocks faced the brunt of the selling, with Tata Steel and Nestle emerging as top laggards due to rising input cost concerns.
• Currency Headwinds: The Indian rupee weakened significantly, trading near the ₹95.70 mark against the US dollar, adding to the macro-economic jitters.

Looking ahead, the market is expected to remain in a "buy-on-dips" mode, provided the Nifty holds the crucial 24,000 support level. Investors will closely monitor further developments in West Asia and the ongoing Q1 earnings season for directional cues.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex