IT Stocks Drag Sensex, Nifty Lower; EV Shares Rally

IT Stocks Drag Sensex and Nifty Lower Despite Strength in EV Shares

A sharp slide in IT heavyweights pulled the benchmarks down for a second session, even as electric-vehicle stocks like Ola Electric and Ather Energy surged on Delhi's new EV policy.

By Naina, 30th June 2026

IT stocks dragged the Sensex and Nifty lower in the latest session, extending the benchmarks' losses for a second straight day, even as electric-vehicle shares bucked the trend and rallied. The BSE Sensex fell 249.70 points, or 0.33 percent, to close at 76,478.67, while the Nifty 50 slipped 80.50 points, or 0.34 percent, to 23,865.75, ending below the 23,900 mark. A steep decline in information technology heavyweights, the worst-performing sector, led the fall on a volatile monthly derivatives expiry day. In contrast, electric-vehicle stocks surged after the Delhi government approved a new policy to accelerate EV adoption, providing a bright spot in an otherwise subdued market.

The session captured a market pulled in two directions. Weakness in large technology names, weighed down by concerns over global demand, US interest rates, and AI-driven disruption, dragged the headline indices, while a policy-driven rally in electric-vehicle shares highlighted pockets of strength. The broader market remained resilient, with midcap and smallcap indices closing higher and advancing stocks outnumbering decliners. Even so, conventional automobile makers slid on the same EV policy that lifted pure-play electric names. Here is a breakdown of what moved the market, the standout EV rally, and what investors are watching next.

The Market Close

The benchmarks ended firmly lower. The Sensex closed down 249.70 points at 76,478.67, and the Nifty 50 fell 80.50 points to 23,865.75, slipping below the 23,900 level for a second consecutive session of losses. Selling intensified in the final hour of trade amid the monthly expiry of derivatives contracts, adding to volatility. Over the two sessions, both benchmarks shed close to 0.8 percent. The decline was concentrated in a few heavyweight sectors, particularly information technology, even as market volatility remained subdued overall and the broader market held up better than the frontline indices, reflecting a selective rather than broad-based sell-off.

The IT Drag

Information technology was the clear culprit. The Nifty IT index tumbled around 2.73 percent, making it by far the worst-performing sector, with major software exporters bearing the brunt of the selling. Tata Consultancy Services fell about 3.1 percent and Infosys around 3 percent, alongside declines in HCL Technologies, Wipro, and Tech Mahindra, with some touching multi-year lows. The weakness reflected persistent concerns over soft global technology demand, the prospect of prolonged high US interest rates, muted earnings expectations, and the disruptive impact of artificial intelligence on traditional services. Given IT's heavy weighting in the indices, its slide was the single largest drag on the market.

The EV Rally

Electric-vehicle stocks were the session's standout. Pure-play EV makers surged after the Delhi government cleared a new electric-vehicle policy, with Ola Electric jumping 8.37 percent and Ather Energy rising 5.24 percent, on heavy trading volumes, while JBM Auto also gained. Analysts noted that EV stocks showed relative strength even in a falling market, signalling investor conviction in the sector's long-term prospects. The rally offered a striking counterpoint to the broader weakness, demonstrating how targeted policy support can drive sharp, sector-specific gains. For a market dragged down by its largest sector, the EV surge was a notable pocket of optimism.

The Delhi EV Policy

The catalyst was a major policy push. The Delhi government approved a comprehensive electric-vehicle policy backed by a roughly ₹15,000 crore outlay, targeting 95 percent of new vehicle registrations in the capital to be electric by 2027. The policy offers generous incentives, including full waivers on road tax and registration fees for electric cars priced below ₹30 lakh, subsidies for electric two-wheelers, and a scrapping incentive, while phasing out registrations of new petrol and other fossil-fuel two- and three-wheelers over the coming years. Analysts see it as a strong long-term demand catalyst for electric-vehicle makers, particularly in the two-wheeler segment, potentially setting a template other states may follow.

The Auto Divide

The policy split the auto sector sharply. While pure-play electric-vehicle stocks rallied, several conventional automobile makers skidded on fears that the shift away from fossil-fuel vehicles could disrupt their businesses. Eicher Motors, the parent of Royal Enfield, was among the biggest losers, falling around 4.4 percent as investors flagged its limited electric portfolio, and component makers such as Bharat Forge also declined. Not all traditional players fell, with Tata Motors gaining. The divide illustrated how the same policy created clear winners and losers, rewarding companies positioned for electrification while pressuring those seen as lagging in the transition to electric mobility.

The Heavyweights

Beyond IT, several large stocks weighed on the indices. Major drags included ICICI Bank, Reliance Industries, State Bank of India, and ITC, whose declines compounded the pressure from technology stocks. On the other side, Maruti Suzuki was among the top gainers, rising more than 5 percent after a brokerage upgrade citing strong passenger-vehicle demand and easing input costs, while Titan, Bajaj Finance, and Adani Enterprises also advanced. Adani Ports gained nearly 2 percent after announcing a significant commercial agreement with a global shipping group. The mix of heavyweight losers and gainers, with IT firmly on the losing side, shaped a session where index moves masked considerable divergence beneath the surface.

The Broader Market

The wider market told a more positive story. In contrast to the frontline indices, the Nifty Midcap 100 rose around 0.37 percent and the Smallcap 100 climbed over 1 percent, reflecting sustained investor interest in broader-market shares. Market breadth was positive, with advancing stocks outnumbering decliners. The rupee weakened for a third straight session, trading near 94.65 against the US dollar amid safe-haven flows, while crude oil held above $73 a barrel. The resilience of mid- and small-cap stocks, even as large-cap technology names slid, underscored that the sell-off was concentrated rather than a sign of broad-based weakness across the market.

The Road Ahead

The market appears to be in a consolidation phase rather than a trend reversal, with analysts describing the recent declines as profit-booking after a strong run. Near-term direction will hinge on global cues, including US employment data and signals from the Federal Reserve on interest rates, alongside domestic factors such as the progress of a weak monsoon and its impact on inflation and earnings. The strength in electric-vehicle stocks may persist if the policy momentum continues, while IT could remain under pressure until demand and rate concerns ease. After two days of losses led by technology, investors will watch whether the broader market's resilience can stabilise the benchmarks. This is analysis, not investment advice.

Frequently Asked Questions

How did the Sensex and Nifty close?
The Sensex fell 249.70 points, or 0.33 percent, to 76,478.67, and the Nifty 50 dropped 80.50 points, or 0.34 percent, to 23,865.75, closing below 23,900 in a second straight session of losses.

Why did the market fall?
Information technology stocks were the biggest drag, with the Nifty IT index falling around 2.73 percent as the worst-performing sector. Heavyweights like TCS and Infosys declined about 3 percent each on demand and interest-rate concerns.

Why did EV shares rally?
Electric-vehicle stocks surged after the Delhi government approved a new EV policy offering tax waivers, subsidies, and a phase-out of fossil-fuel two- and three-wheelers, seen as a strong long-term demand catalyst. Ola Electric rose 8.37 percent and Ather Energy 5.24 percent.

Why did some auto stocks fall?
Conventional automobile makers skidded on the same EV policy, with Eicher Motors falling over 4 percent on concerns about its limited electric portfolio, as investors worried the shift away from fossil-fuel vehicles could disrupt their businesses.

How did the broader market perform?
The broader market was resilient, with the Nifty Midcap 100 up around 0.37 percent and the Smallcap 100 rising over 1 percent, and advancing stocks outnumbering decliners, indicating a selective rather than broad-based sell-off.