Nifty slips as IT rout and Iran risks weigh

Indian equities ended lower with the Nifty near 23,150 as IT stocks slumped and broader markets lagged. West Asia tensions, rupee weakness and AI-related worries over IT earnings kept risk appetite muted despite support from private banks and pharma.

Updated 12 Jun 2026, 2:09 am IST · next at 12 Jun 2026, 8:09 am IST

Sentiment

Cautiously negative

· IT and defence selling
· West Asia tension worries
· Rupee and oil pressures

What matters now

Sensex closes below 74,000, Nifty near 23,150 after volatility
IT index drops, Infosys, TCS, HCL Tech lead sector losses
Broader markets lag with small and midcaps seen as fragile
Rupee weak on firmer crude and oil firm dollar demand
Private banks and pharma support but cannot lift indices

Stock categories in play

IT services▼ negativeNifty IT falls about 3% as AI, US demand worries deepen.Screen lens: Generally screen-friendly; watch leverage and cash ratios.
Banks & NBFCs◮ mixedPrivate banks outperform and support indices; Bank Nifty stays volatile.Screen lens: Conventional banking/NBFCs are interest-based and usually non-compliant.
Pharma▲ positivePharma stocks gain, helping offset tech weakness in headline indices.Screen lens: Often passes business screen; still check debt and cash levels.
Defence▼ negativeDefence stocks see selling amid risk-off mood and profit booking.Screen lens: Business lines usually permissible; apply standard financial screens.
Oil & gas◮ mixedCrude recovery pressures rupee; focus on OMC margins and energy earnings.Screen lens: Core business halal; ensure leverage and interest income within limits.

Geopolitical lens

US–Iran tensions

▼ negative

Escalating tensions hurt sentiment, weigh on IT, defence and risk assets.

Oil and rupee moves

▼ negative

Higher crude and weaker rupee raise costs, pressuring import-heavy sectors.

For the halal portfolio

Stay patient amid IT-led volatility and geopolitics, focusing on fundamentally sound, Shariah-compliant names.