Equity Alert
IT cos plunge after OpenAI announces new AI deployment co
This story was originally published at 11:35 IST on 12 May 2026
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Equity Alert: IT cos plunge after OpenAI announces new AI deployment co
MUMBAI--1110 IST--Shares of most information technology companies fell sharply after US-based artificial intelligence company OpenAI Monday announced the launch of a new company to help businesses build and deploy AI systems. The US-based company's foray into deployment services has stirred up concerns that this might become a competition for Indian IT companies, eating up their revenues and market share, according to two analysts covering the sector.
Intraday, the Nifty IT index fell around 4% to a three-year low of 28250.75 points. Sectoral majors Tata Consultancy Services, Infosys, and HCL Tech fell 4-5% to multi-year lows. At 1056 IST, the index traded 3.6% lower at 28277.90, with all constituents in the red, down 0.8-5%.
The OpenAI deployment company will extend OpenAI's ability to embed engineers specialised in frontier AI deployment, known as forward deployed engineers, into organisations working on complex problems in demanding environments, OpenAI said in a public notice Monday. These forward-deployed engineers will work closely with business leaders, operators, and frontline teams to identify where AI can make the biggest impact, redesign organisational infrastructure and critical workflows around it, and turn those gains into durable systems, it said.
The OpenAI Deployment Co is a committed partnership between OpenAI and 19 leading global investment firms, consultancies, and system integrators, including TPG, with Advent, Bain Capital, Brookfield, B Capital, BBVA, Emergence Capital, Goanna, Goldman Sachs, SoftBank Corp., Warburg Pincus, and WCAS. The initial investment in the new company will be $4 billion, OpenAI said. As part of the launch, OpenAI has also agreed to acquire Tomoro, an applied AI consulting and engineering firm that helps enterprises turn AI into operational advantage. (Arya S. Biju)
Equity Alert: Benchmark indices extend losses; ONGC, Hindalco rise
MUMBAI--1052 IST--Headline indices extended their losses from the opening levels. Only 13 stocks in the benchmark 50-stock index gained and of these, at least three stocks osciallted between gains and losses. Oil and Natural Gas Corp., Hindalco Industries, and NTPC helped cap losses for the Nifty 50. ONGC was also the top gainer in the Nifty 50.
At 1050 IST, the Nifty 50 was down 0.9% at 23608.95 points and the BSE Sensex was down 1.1% at 75215.50 points. The advance-decline ratio tilted towards the laggards as almost 70% of the stocks on the NSE declined. Volatility was largely contained; the India VIX was up only 0.7% at the 18.71 level.
Sectorally, only four indices were in the green. The Nifty Oil & Gas index was the top gainer, primarily due to gains in upstream oil companies ONGC and Oil India. Oil India gained over 7% while ONGC was up almost 6%. These stocks advanced after the government slashed royalty on onshore and offshore crude oil prodcution. On the flip side, the Nifty IT index was the top loser. All constituents of the technlogy index fell with shares of Persistent Systems and Tata Consultancy Services lagging the most compared with peers, and were down nearly 5% and 4%, respectively.
The Nifty IT index was under pressure after OpenAI said it launched a new company, OpenAI Deployment Co., to help organisations build and deploy artificial intelligence systems for daily work. (Ruchira Kagita)
Equity Alert: JSW Energy falls 8%; JM Financial downgrades stock to "add"
MUMBAI--1051 IST--Shares of JSW Energy fell over 8% Tuesday to a one-month low of INR 512. The stock was the worst hit Nifty 200 constituent. The stock declined after the company reported a high-single digit fall in its consolidated net profit for the March quarter. JM Financial Institutional Securities downgraded the stock to "add" from "buy".
The brokerage raised its target price on the stock by over 2% to INR 627 and said the stock was trading at an expensive valuation given the recent run-up. It has raised its estimates for revenue for 2026-27 (Apr-Mar) by a tad over 1% and for FY28 by 1%. It has also increased the estimates for earnings before, interest, taxes, depreciation, and amortisation by 4.6% for FY27 and by 3.9% for FY28.
Elara Securities (India) revised its recommendation to "accumulate" from "buy" due to a 14% gain in share price in the past three months. It has also raised its target price by 3.6% to INR 602 on the back of a robust capacity addition pipeline. However, it has cut the net profit estimates by 5.9% for FY27 and by 4.4% for FY28, factoring in softer merchant prices. It has also reduced the revenue and EBITDA estimates by 1.6% and 3.5% for FY27 and by 0.8% and 2.1% for FY28, respectively.
Motilal Oswal Financial Service has reiterated its "buy" rating on the stock with a target price of INR 640. On other hand, Prabhudas Lilladher has a "buy" rating with a target price of INR 644 and believes the company offers one of the best EBITDA growth in the power sector.
For the March quarter, JSW Energy's consolidated net profit fell nearly 9% on year to INR 3.72 billion owing to a sharp increase in the company's expenses. The company's revenue jumped over 41% on year to INR 44.99 billion.
All five brokerage reports on the stock available with Informist have a "buy" or equivalent recommenadtion with an average target price of INR 628. At 1048 IST, the stock traded 5.7% lower at INR 524.85 with nearly 8 million shares changing hands on the NSE Tuesday. This is sharply higher than the 1.75 million shares traded till the same time Monday. (Simran Rede)
Equity Alert: ONGC, Oil India surge after govt cuts royalty on oil production
MUMBAI--1037 IST--Shares of Oil and Natural Gas Corp. and Oil India rose Tuesday after the government slashed the royalty rates on the production of crude oil and natural gas. ONGC rose over 6% to an intraday high of INR 299.15 and its peer Oil India rose nearly 8% to an intraday high of INR 492. These stocks were the top gainers in both the Nifty 200 and Nifty 500 indices.
The government of India reduced the royalty on onshore crude oil production to 10% and on offshore crude production to 8%. This move is a big boost to the country's upstream sector, said Hardeep Singh Puri, Union minister of petroleum and natural gas, in a social media post. "The revised Schedule removes long-standing inconsistencies across regimes to ensure a stable, predictable, and investor-aligned framework for India's upstream sector," Puri said.
Global brokerage, CLSA, maintained a 'high conviction outperform' rating on ONGC with a target price of INR 405. The brokerage is of the view that the government's decision came as a surprise and could increase the fair value of ONGC by 7–9% and Oil India by 9-11%, CNBC TV-18 reported. CLSA said that ONGC could post a total return of over 50% with Brent Crude Oil prices at $80 per barrel as the stock currently factors in crude oil prices around $65 per barrel.
At 1033 IST, shares of ONGC traded nearly 6% higher at INR 296.80 and Oil India traded over 7% higher at INR 489.10. Nearly 24 million shares of ONGC changed hands and nearly 14 million shares of Oil India changed hands on the NSE. (Adhithya Aji)
Equity Alert: Dr. Reddy's declines slightly ahead of its Jan-Mar earnings
MUMBAI--1020 IST--Shares of Dr. Reddy's Laboratories fell over 1% to the day's low of INR 1,266.10 ahead of the announcement of the company's March quarter results. The stock was down for the fourth straight session and has lost over 3% during this period. In a month's time, the stock has shed nearly 4%.
The pharmaceutical major is expected to post a sharp decline in net profit as lower US sales amid rising competition in generic cancer drug Revlimid and price erosion are expected to affect its earnings. Its consolidated bottom line for the quarter is seen at INR 8.95 billion, down almost 44% on a year-on-year basis, and top line at INR 82.69 billion, down 3% on year. The increased competition for Revlimid, coupled with price erosion and channel inventory adjustments, are expected to weigh on US sales.
At 1012 IST, shares of the company were 0.6% lower at INR 1,272.90 on the NSE. So far in the day, nearly 270,000 shares of the company have changed hands, lower than nearly 274,000 shares traded till the same time Monday.
Of the 13 brokerage reports available with Informist on the company, eight have a 'buy' recommendation with an average target price of INR 1,498. Of the remaining five, three have a 'sell' call and two have a 'hold' recommendation on the stock. (Arundathi A R)
Equity Alert: Torrent Power shares turn choppy ahead of Jan-Mar earnings
MUMBAI--1010 IST--After opening lower, shares of Torrent Power swung between gains and losses, ahead of the company's March quarter earnings announcement due later in the day. At 0954 IST, the stock was at INR 1,679.10, down 0.1% from Monday's close. Around 37,215 shares of the company changed hands on the National Stock Exchange, lower than 62,570 shares till the same time Monday.
For the March quarter, Elara Securities (India) Pvt. Ltd. expects the power company's consolidated net profit to fall around 52% on year to INR 5.10 billion, while JM Financial Institutional Securities Pvt. Ltd expects it at INR 6.05 billion, down nearly 43% on year. For the year-ago quarter, the company had reported a net profit of INR 10.60 billion.
On the revenue front, Elara Securities expects the company's consolidated sales at INR 73.40 billion, up around 14% on year. JM Financial expects the top line at INR 68.10 billion, up 5.5% on year. The brokerage attributes the muted top line growth to a 3% increase in generation and a seasonally weak quarter in the transmission segment. For the year-ago quarter, the company had reported consolidated revenues of INR 64.56 billion.
All three research reports on the company available with Informist have a "sell" rating on the stock with an average target price of INR 1,333 per share, which is 21% lower than the current market price. (Shruti Nair)
Equity Alert: Indices open lower as US-Iran deal hopes fade
MUMBAI--0945 IST--Benchmark indices opened lower Tuesday as hopes of the US and Iran reaching a deal faded. The July Brent crude futures contract was above $105 per barrel. Information technology stocks were the major laggards in the indices.
At 0942 IST, the Nifty 50 was at 23643.30, down 172.55 points or 0.7%, and the BSE Sensex was at 75359.85 points, down 655.43 points or 0.9%. The oil exploration company Oil and Natural Gas Corp. was the top gainer among the Nifty 50 constituents, up 4%. Hindalco Industries rose nearly 2%, while Coal India, Tata Steel, Bajaj Auto, and NTPC were up 0.2-0.6%.
On the other hand, IT majors – Infosys, Tata Consultancy Services, Tech Mahindra, and Wipro declined 2-3%. SBI Life Insurance Co., Adani Ports and Special Economic Zone, HDFC Life Insurance Co., Asian Paints, Maruti Suzuki India, and Bajaj Finance were down around 1?ch. Banking heavyweights HDFC Bank and ICICI Bank were down around 1?ch.
All the broader market indices mirrored the losses in benchmarks, down around 1?ch. Barring Nifty Metal and Nifty Oil & Gas, all the other sectoral indices were in the red. Nifty Metal rose 0.6% and Nifty Oil & Gas gained 0.4%. Nifty IT was down nearly 3%.
Meanwhile, Oil India was the top gainer in both the Nifty 200 and Nifty 500 indices, up nearly 7%. Shares of upstream companies such as Oil India and ONGC rose amid higher crude oil prices. JSW Energy was the worst hit in both the Nifty 200 and Nifty 500 indices, down over 7%.
Shares of Billionbrains Garage Ventures fell nearly 4?ter investors offloaded shares in multiple block trades. UPL fell more than 4?ter the company missed analysts' estimates for net profit. The company reported a consolidated net profit of INR 10.61 billion, up 18% on year. (Adhithya Aji)
Equity Alert: Seen dn as US, Iran nowhere closer to deal; oil prices to weigh
MUMBAI--0825 IST--Benchmark equity indices are likely to open lower Tuesday due as the US and Iran seemed far from reaching a resolution to end the war. Sentiment turned negative after the US President Donald Trump rejected Iran's proposal to end the war. The crude oil prices staying above $100 a barrel also remain a major overhang on the market sentiment. US indices closed higher Monday, while most Asian equity indices were in the red. At 0822 IST, Brent crude July futures were 1% higher at $105.33 a barrel.
"US President Donald Trump has said the ceasefire with Iran is "on life support" after rejecting Tehran's latest proposal to end the conflict, calling it "totally unacceptable", Al Jazeera reported. According to various news reports, Trump slammed the Iranian government and called its proposal "a piece of garbage". Meanwhile, Esmaeil Baghaei, Iran's foreign ministry spokesman, claimed the US had made "unreasonable demands" to end the war.
In another development, news reports say Pakistan has allowed parking of Iranian military aircraft at its airbases amid fears of a US-Iran strike, CBS News reported, citing US officials. "...the movements reflected an apparent effort to insulate some of Iran's remaining military and aviation assets from the expanding conflict, even as officials publicly served as brokers for de-escalation," according to the CBS News report.
The May contract of the Gift Nifty suggested a lower opening for the domestic equity indices. At 0823 IST, the Gift Nifty was largely flat from its previous close at 23710 points, and was short of over 100 points from the Nifty 50's previous close of 23815.85. "Going ahead, sustenance below 23800 spot levels could lead it (Nifty 50) towards 23500 and lower levels in the immediate term," said Vipin Kumaar, assistant vice president of equity research at Globe Capital Market. "However, a sustained trading above 24150 spot levels might lead it (Nifty 50) towards 24350 and higher levels," he added.
India's consumer price index data, due for release later in the day, will be in the spotlight. Brokerage HSBC Global Investment Research sees the headline inflation in India rising to 5.6% in the financial year 2026-27 (Apr-Mar). The combined effect of a rise in energy prices and the expected onset of the El Nino climate pattern are considered as the major triggers for the rise in inflation data. According to an Informist poll of 13 economists, consumer price index inflation is seen rising to a 15-month high of 3.8% in April from 3.4% in March.
Dr Reddy's Laboratories, Tata Power Co., Dixon Technologies India, Max Financial Services, and Torrent Power will detail their March quarter earnings Tuesday. Dr. Reddy's is likely to post a sharp decline in net profit, as lower US sales amid rising competition in generic cancer drug Revlimid and price erosion are expected to affect its earnings. The pharmaceutical major's consolidated bottom line for the quarter is seen at INR 8.95 billion, down almost 44% on year. Its top line is expected to be INR 82.69 billion, down 3% on year for the March quarter. (Arundathi A R)
Equity Alert: Asian indices mixed as US-Iran talks sour, crude oil rises
MUMBAI--0810 IST--Stock indices in Asia were mixed as market participants assessed the impact of worsening tensions between the US and Iran. US President Donald Trump said the truce with Iran was "unbelievably weak" and that it was on "life support." China's CSI 300, Australia's S&P ASX 200, and Japan's Nikkei 225 indices oscillated between gains and losses, while the KOSPI was in the red. South Korea's benchmark index underperformed its Asian peers by a wide margin, falling more than 3% in early trade.
"I would call it the weakest, right now, after reading that piece of garbage they sent us," Trump said. "I would say the ceasefire is on massive life support, where the doctor walks in and says: ‘Sir, your loved one has approximately a 1% chance of living," he added. Brent Crude oil futures were higher at nearly $105 per barrel.
In macroeconomic news, the Bank of Japan, in its recent summary of opinions, said that it may have to raise rates "in response to developments in economic activity and prices as well as financial conditions. While the economy is expected to grow moderately, inflation is likely to increase gradually, the Bank of Japan said. Risks to inflation will be higher if the war in West Asia stretches on for longer. Further, the Bank of Japan warned that corporate profits and household incomes will also take a hit if crude oil prices remain elevated for a longer period.
In Australia, a National Australia Bank survey revealed that business confidence improved only marginally to (-)24 in April from (-)29 in March. The marginal uptick was driven by partial recoveries in retail, construction, recreation, and personal services, the survey said, while noting that confidence across industries and regions remains negative. "Rising prices and pressure on margins are beginning to affect activity and investment measures," the survey said.
The following were the levels of major Asian indices at 0807 IST:
| Index | Level | Change in % |
| CSI 300 Index | 4952.4221 | 0.01 |
| Hang Seng Index | 26488.45 | 0.31 |
| Nikkei 225 Day | 62619.37 | 0.32 |
| TOPIX FIRST SECTION | 3860.94 | 0.52 |
| KOSPI | 7708.38 | (-)1.46 |
| FTSE Singapore Strait Times | 4944.40 | 0.03 |
| S&P/ASX 200 Index | 8665.10 | (-)0.42 |
(Ruchira Kagita)
Equity Alert: US indices end on positive note, earnings momentum helps
MUMBAI--0730 IST--Indices on Wall Street closed in the green even as sentiment was weak due to worsened peace talks between the US and Iran. US President Donald Trump said ceasefire talks with Iran were "unbelievably weak" after earlier calling Iran's proposal for peace unacceptable. Brent Crude oil futures hovered near $105 per barrel. Strong earnings kept market participants positive.
"If we get weakness after this really strong recovery from the March lows, I would see it as a buying opportunity, because this is a market that is being fueled by corporate profits, by capex, and frankly by a strong labor market," Marci McGregor, head of portfolio strategy, chief investment office, at Merrill and Bank of America Private Bank, told CNBC. As of Friday, analysts estimated the earnings growth of S&P 500 stocks for the quarter ended March at 28.6% on year, Reuters reported.
Technology majors continued to gain Monday. From the NASDAQ Composite, Micro Technology closed over 6% higher. Shares of Nvidia Corp., Tesla, and Intel Corp. gained 2-4%. In the S&P 500, six of the 11 sectors ended higher. The S&P 500 Energy index eked out the most gains compared with its peers, and the index closed 2.6% higher. On the flip side, the S&P Communication Services fell 2.63%. Among others, some airline stocks were under pressure. Shares of Southwest Airlines, Delta Air Lines, Alaska Air, and United Airlines fell 3.0-4.4%.
The following were the closing levels of major US indices on Monday:
|
US Indices |
Levels |
Change in % |
|
Dow Jones Industrial Average |
49704.47 | 0.19 |
|
NASDAQ Composite |
26274.125 | 0.10 |
|
S&P 500 |
7412.84 | 0.19 |
(Ruchira Kagita)
US$1 = INR 95.53
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vandana Hingorani
All prices from National Stock Exchange, unless otherwise specified.
All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.
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