IT rout overshadows late recovery; Nifty snaps 5-day winning streak
But, the index manages to close above 24000
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha, we explore one of the most misunderstood ideas in markets: the difference between correlation and causation — and why getting it wrong has a very real price.
We start with a story you won’t forget: a quant from MIT who predicted the S&P 500 with 99% accuracy using butter production and sheep. The math was spotless. The logic was nonexistent. And that’s exactly the point.
Correlation tells you that two things move together. Causation tells you why. Markets generate enormous data — and enormous data generates endless opportunities to find patterns that look meaningful but aren’t.
Markets Today
Nifty opened with a sharp 177-point gap down at 23,991, pressured by a nearly 5% decline in the IT index after Accenture trimmed its growth forecast for the year. The index extended losses in the opening minutes, slipping toward the 23,950 level before stabilising. A brief recovery attempt took Nifty above 24,000 around 10 AM, but the gains proved short-lived.
The index remained largely range-bound through the late morning session, oscillating between 23,940 and 23,970. Selling pressure resurfaced around noon, dragging Nifty to the day’s low near the 23,910–23,920 zone by around 1 PM.
In the second half, the market gradually recovered, with Nifty reclaiming the 23,950 mark and moving higher toward 23,980–24,000 levels by around 2:30 PM, mainly led by Reliance, tracking updates from its AGM. However, another bout of volatility emerged late in the session, briefly pushing the index back toward the day’s lows near 3 PM.
A sharp rally in the final 30 minutes changed the tone of the market. Nifty surged more than 100 points from intraday lows, and closed the day & week above the psychological mark of 24,000 at 24,013.10.
The session was marked by weakness in IT stocks, a prolonged period of range-bound trade, and a strong late recovery that helped Nifty erase opening losses and finish above the 24,000 mark.
Sectoral Indices Performance
6 of 12 sectors closed green. Nifty Pharma (+0.73%) and Nifty Energy (+0.22%) led. Nifty IT (-3.65%) was the weakest.
Winners & Losers
Momentum Screener
Commodities
Global Markets
Bond Yields & Currency
FII / DII Flows
Here’s the trend of FII-DII activity from the last 5 days:
Thematic Indices
Tijori’s niche indices, where today’s move sorts pockets of the market beyond standard sector baskets. You can also track promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 23rd June:
The maximum Call Open Interest (OI) is observed at 24,500, followed by 24,000, indicating potential resistance at the 24,200 -24,300 levels.
The maximum Put Open Interest (OI) is observed at 24,000, followed by 23,500, suggesting support at 23,800-23,700.
Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.
Source: Sensibull
Top Stories in India
Reliance Industries has approved the DRHP for the IPO of its digital services arm, Jio Platforms. Chairman Mukesh Ambani announced at the company’s AGM that the draft papers will be filed with SEBI today, marking a major step toward one of India’s most anticipated public offerings. Dive deeper
Jio Platforms plans to use around ₹27,500 crore from its proposed IPO to repay debt, according to its DRHP. The company’s net debt has already declined significantly to ₹27,579 crore in FY26 from ₹45,273 crore a year earlier. Dive deeper
Indian IT stocks fell sharply after Accenture cut its full-year revenue growth forecast and flagged softer demand, raising concerns over global technology spending. The sell-off dragged the Nifty IT down nearly 6% intraday before it recovered some losses to close 3.65% lower. Dive deeper
SEBI has approved the return of open-market share buybacks from August 1, 2026. Companies will be required to complete buybacks within 66 days and deploy at least 40% of the proposed buyback amount. Dive deeper
India’s foreign exchange reserves fell by $9.99 billion to $671.63 billion in the week ended June 12, marking a sharp decline from the previous week’s $711 million drop. According to the RBI, the decrease was primarily driven by a significant fall in gold reserves. Dive deeper
Money market rates hardened to 5.37% from an average of 5.16% a week earlier as surplus liquidity in the banking system shrank sharply following advance tax payments. Banking system liquidity fell to just ₹4,772 crore as of June 17, its lowest level in the current financial year, compared with a surplus of around ₹1.7 lakh crore a week ago, leading to tighter short-term funding conditions. Dive deeper
Tata Power received a Letter of Intent from REC Power Development and Consultancy to acquire Ryapte Power Transmission. The transmission project carries annual transmission charges of ₹521.07 crore and strengthens Tata Power’s presence in the power transmission infrastructure segment. Dive deeper
Kalyani Strategic Systems, the wholly owned defence subsidiary of Bharat Forge, has entered into a strategic partnership with AM General to develop jointly and market mounted artillery gun systems for global markets. Dive deeper
VA Tech Wabag has secured a mega DBO contract in Kuwait for the Doha SWRO Desalination Plant – Stage II, an international project valued at over $150 million. The project involves designing, building, and operating a 272 MLD seawater desalination plant with a recarbonation system, and is expected to be completed within 36 months. Dive deeper
Top Stories Globally
Prospects for a formal U.S.-Iran agreement remain uncertain after Switzerland said talks scheduled for Friday would not take place and U.S. Vice President JD Vance canceled his planned trip. The development has raised doubts about the timing and durability of any truce, even as the White House emphasized that negotiations remain complex and unpredictable. Dive deeper
Brent crude rose to around $80 per barrel after planned U.S.-Iran talks in Switzerland were cancelled and Israel continued strikes in Lebanon, reviving some geopolitical risk premium. However, oil remained on track for a steep weekly decline as improving shipping conditions in the Strait of Hormuz. Dive deeper
The U.S. dollar remained firm against major currencies as uncertainty over a potential U.S.-Iran peace agreement and the Fed’s hawkish stance boosted demand for safe-haven assets. The dollar rose to as high as 161.8 against the Japanese yen, approaching a two-year high and putting the yen on track for its weakest level against the dollar since 1986. Dive deeper
Japan’s Nikkei 225 posted its strongest weekly gain since August 2024, rising 7.9% this week at 71,250.06, after spiking 1.3% to a record of 71,952.99 as enthusiasm around AI-related stocks drove the index to consecutive record highs. Although gains were pared on Friday amid concerns over the prospects of ending the Iran conflict, the index still closed higher, extending its winning streak to seven sessions. Dive deeper
Management Chatter
In this section, we highlight interesting comments from the management of major companies and policymakers in the Indian and Global Economies.
Akash Ambani, Chairman of Reliance Jio Infocomm Ltd (RJIL) on its vision with regards to AI economics:
“Reliance Intelligence will disrupt AI economics by making it dramatically more affordable for every Indian by the end of the decade, similar to how Jio made data affordable” - Link
Mukesh Ambani, Chairman and MD of Reliance Industries, aims to achieve carbon-neutral operations in its O2C business segment:
“In the long run, we will convert all the oil we refine into chemicals and new materials. This transformation will fundamentally improve the quality, resilience, and value of our earnings. I am confident that our new Oil-to-Chemicals & Materials business will become even more valuable than our current O2C business,” - Link
David Roche from Quantum Strategy on Fed’s actions and AI:
“People assume that the Fed will continue to fulfil its inflation mandate ahead of anything else. Therefore, interest rates... will not be cut, at least not at the moment... That helps markets because it gives confidence in the dollar.”
“AI is... a bubble. Not because it is not a good product, but because the amount of money being poured into it is not rational and will not be remunerated by profits.” - Link
Corporate Actions & Events
Corporate Actions
Published by Zerodha. Not investment advice. Data from NSE, BSE, and MCX.
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This IT rout feels like the 'Nifty IT Paradox' in action – masking deeper structural shifts MarketMind explores.