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Indian stocks fall as Reliance and IT losses overwhelm US trade optimism

India's stock indexes dipped on Tuesday as a decline in Reliance Industries?and profit taking in TCS and HCLT after the IT service?firms quarterly results weighed down on sentiment.

As of 10:24 a.m. IST, the Nifty 50 dropped?0.1%?"to 25,766.7 while the Sensex fell 0.09%?to 83,803.86,

Both benchmarks opened up about 0.4% higher.

After declining for five straight sessions, they each rose by 0.4% on Monday as expectations grew about the India-U.S. Trade Talks regaining?momentum following a U.S. Envoy's statement that New Delhi would be discussing?trade matters in a phone call later that day.

V.K. Vijayakumar, chief investment strategist at Geojit Investments.

The oil prices rose after?unrest? in Iran fuelled?fears? for supplies. Meanwhile, Trump warned that countries doing business with Iran would be subject to a 25% tariff.

The higher oil prices have a negative impact on importers, including India.

Reliance Industries dropped 1.1% after rising 0.5% Monday. Last week, the oil-to-telecom company had fallen 7.4% after it said that it did not expect any Russian crude deliveries.

IT index dropped 0.4%. HCLTech and TCS fell 2% each and 0.1% respectively.

HCLTech reported a third-quarter sales beat, but narrowed its growth guidance for FY26 to 4%-4.5%, from 3%-5.5%. This indicates a decline in the fourth-quarter on seasonality of product business, CLSA?said.

Nomura is not optimistic about TCS's growth and flat margins for FY27.

Ten of the sixteen major sectors posted losses. Small-caps gained 0.5%, while mid-caps fell 0.2%.

HDFC Bank, the top private lender, rose by 0.6% following CLSA's "Outperform", as concerns about moderate deposit growth and loan-to-deposits ratio were misconceived.

(source: Reuters)