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India’s IT sector is facing a  deepening downturn , with over  US$115 billion in market value erased , as weak earnings and rising AI disruption shake investor confidence. Earnings Disappoint, Growth Outlook Weakens Recent results from major players have reinforced concerns: Infosys  guided  below-expectation revenue growth HCL Technologies  reported a  profit miss , triggering multiple downgrades The  Nifty IT Index  fell over  5% , hitting its  lowest level since mid-2023 , and is now  down ~25% in 2026 , making it the  worst-performing sector in India . Twin Headwinds: Macro Weakness and AI Disruption The sector is grappling with  two major challenges : Weak global demand Ongoing geopolitical tensions and economic uncertainty are  reducing discretionary IT spending Clients are  delaying large, multi-year projects Rapid rise of AI AI is  disrupting traditional outsourcing models Firms must  adapt quic...

Morgan Stanley has shifted to a more cautious stance on Asian equities, cutting its overweight call on India as escalating Middle East tensions threaten energy supply chains and earnings outlooks. Key Takeaways Morgan Stanley downgrades India from overweight to equal-weight Asia seen as highly exposed to Middle East oil and LNG disruptions Strait of Hormuz risks could pressure earnings and valuations Foreign investors have pulled US$1.3b from India since the war began Why Morgan Stanley Is Turning Cautious Morgan Stanley  strategists warned that Asian markets remain heavily dependent on Middle Eastern energy flows — including crude oil, refined products and LNG. A prolonged disruption in the Strait of Hormuz could: Lift oil and LNG prices Trigger earnings downgrades Raise regional risk premiums Slow economic growth across energy-importing economies Key Point: The bank believes markets are too complacent about supply-chain risks from the Iran war. India Downgraded on Energy Vulnerab...

Simple Summary Rupee posts its biggest gain in over three years Indian stocks jump the most since 2021 US slashes tariffs on Indian goods to 18% Deal removes a major overhang on Indian markets What Happened Indian markets roared higher after US President  Donald Trump  announced a sharp  tariff cut on Indian goods to 18% , down from 25%, while also  scrapping an additional 25% levy  tied to India’s purchases of Russian crude. Market Reaction Nifty 50 Index:   +5% intraday  (biggest jump since 2021) Indian rupee:   +1.2% to 90.46/USD , its strongest move in more than three years The deal delivered  much-needed relief  to the rupee, which had been  Asia’s worst-performing currency in January . Why It Matters India sends a  large share of exports to the US Tariffs had weighed on  equities, currency and foreign inflows The agreement  lifts a key source of uncertainty  for investors “The deal finally provides some rel...

The  Singapore Exchange  is exploring the launch of  government bond futures  linked to key Asian markets, in a move that could significantly deepen regional fixed-income trading and risk management. What’s Being Proposed According to sources, SGX has held discussions with treasury officials from global banks on introducing  bond futures tied to Asian sovereign markets , including: India Indonesia Malaysia Philippines Thailand These futures would allow investors to  hedge interest-rate risk  more efficiently by trading standardized contracts rather than underlying bonds. Key Product Features (Proposed) Tenors:  3-year, 5-year and 10-year maturities Settlement:  US dollar–denominated Pricing:  Based on the  average yield of a basket of up to three sovereign bonds  per country Launch timeline:   1H 2026 , potentially as early as  1Q 2026 Details remain preliminary and subject to change. Why This Matters Rising Global In...

Volatility Ahead, But Panic on Hold Indian stocks are expected to open choppy as  Trump threatens higher tariffs on India , citing its continued purchase of Russian oil. Still,  Nifty futures held steady  in early trade, suggesting  markets aren’t pricing in immediate shock  — at least for now. “Short-lived,” says Mark Mobius on Trump’s tariff noise.  Earnings Recovery Delayed Jefferies & Motilal Oswal : More  FY26 profit downgrades  ahead Q1 results  largely underwhelming — marking the  4th straight quarter of muted growth Morgan Stanley  remains hopeful for a  September quarter rebound Key earnings today : Bharti Airtel Adani Ports Britannia Industries MSCI Inclusion Buzz Nuvama sees  rising passive inflows  ahead of the MSCI Standard Index reshuffle.  Candidates include : Vishal Mega Mart Swiggy Hitachi Energy India Waaree Energies ➡️ Estimated  passive flows: up to $270M ➡️ Signals  strong globa...