South Korean market meltdown barely ruffles India; IT stocks steal the show

On Tuesday, South Korea experienced a significant market downturn with the KOSPI index plummeting by 11%, while Japan's Nikkei fell nearly 4%. However, India's markets remained relatively stable, with the Nifty 50 index ending almost flat at 23,985, down only 0.04% on a day marked by a monthly F&O expiry. IT stocks led the charge, with the Nifty IT index rallying 3.3%.

Coforge, a prominent IT firm, jumped 10% after reporting a substantial 33% year-on-year revenue growth, driven by a surge in AI-led engineering, data, and cloud services. The IT sector has gained nearly 16% from its recent lows following Coforge's strong performance. Conversely, FMCG and energy stocks faced pressure, with Hindustan Unilever and Varun Beverages falling by 7% each due to weaker-than-expected earnings.

Efforts to ease geopolitical tensions in West Asia provided some relief, with US President Trump signaling progress in Iran-related talks. The rupee strengthened as US crude prices fell, but remained vulnerable to potential Federal Reserve rate hikes. Looking ahead, investors will closely monitor earnings from various companies, including Asian Paints, Eicher Motors, Dabur India, Adani Enterprises, and Colgate-Palmolite.