August 26, 2025 | IT Strength Leads—Markets Watch Global Cues and Earnings

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Oorjita FinAI – Morning Market Brief

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Tuesday, August 26, 2025 | 8:39 AM IST

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1. Good Morning & Market Recap

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Markets closed higher yesterday with Nifty gaining 0.39% to close at 24,968 and Sensex up 0.40% at 81,636. The standout theme was IT sector strength, with major tech giants leading the charge as global
cues remained supportive.

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What's Different Today:

• IT momentum continues – sector showed broad-based strength with TCS, Infosys, and HCL Tech
all gaining 2.5%+

• Banking mixed signals – Bank Nifty slightly negative despite overall market strength

• GIFT Nifty indicates flat opening around 24,715 levels

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Key Watch Factors:

• Fed rate cut expectations post-Jackson Hole commentary & markets await Nvidia earnings

• Continued FII flows and domestic institutional buying patterns

• IT earnings trajectory and global demand trends

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2. Tech Pulse

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IT Sector Dominance

Yesterday's session belonged to technology stocks with Infosys surging 3.28%, TCS up 3.04%, and HCL
Technologies gaining 2.65%. The rally reflects optimism around:

• Improved demand visibility in BFSI and retail segments

• Currency tailwinds supporting margin expansion

• Strong deal pipeline momentum

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Global Tech Sentiment:

• Nasdaq futures trading at 23,759, indicating steady overnight sentiment

• Cloud transformation spending remains resilient despite macro headwinds

Actionable Trigger: Watch for TCS earnings commentary around digital transformation deals and any
guidance updates on FY26 growth trajectory.

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3. Funding Radar

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Major Infrastructure Win:

NBCC secures ₹3,700 crore mega project from Rajasthan Government for Rajasthan Mandapam Convention Centre development. The project spans 95 acres and includes GCC towers, IT infrastructure,
and luxury hotels.

IPO Pipeline Heating Up:

• Anlon Healthcare (₹121 crore) opens Aug 26–29

• Vikran Engineering (₹772 crore) launches simultaneously

• Week's total IPO value: ~₹900 crore across mainboard issues

Sectoral Impact:

Infrastructure and real estate development stocks may see renewed interest following
large government project announcements.

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4. Market Movers & Watchlist

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Top Gainers:

• LT Technology Services: +2.91% – highest gain in 11 weeks

• Pharma Revival: Strides Pharma (+4.7%), Zydus Lifesciences (+3.5%)

• Midcap Momentum: Jubilant FoodWorks (+4.82%), Vodafone Idea (+4.81%)

Under Pressure:

• Asian Paints: -1.01% on valuation concerns

• Apollo Hospitals: -0.88% profit booking

• Nestle: -0.86% on defensive rotation

Watch Levels:

• Nifty Support: 24,850 | Resistance: 25,100

• Bank Nifty: Critical hold above 55,000 for sustained momentum

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5. Quick Bytes

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Rating Action: Fitch affirms India at 'BBB-' with Stable outlook, reinforcing sovereign credit strength

Market Breadth: North India leads investor growth with 20% YoY increase in retail participation, per NSE data

Quirky Stat: Eternal Ltd trades at astronomical P/E of 1,030x – highlighting frothy valuations in select pockets

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6. Deep Dive – IT Sector Renaissance

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The Comeback Story :

After a challenging FY24, Indian IT services are witnessing a demand revival driven by:

• AI implementation projects gaining traction across BFSI clients

• Cloud migration acceleration post-pandemic digital adoption

• Cost optimization mandates favoring Indian service providers

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By The Numbers:

• Nifty IT Index outperformed Nifty 50 by ~150 bps yesterday

• TCS market cap: ₹11.04 lakh crore, maintaining premium valuations[1]

• Sector P/E: 23–25x range vs historical average of 20–22x

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Investor Takeaway:

Current rally appears fundamentally backed rather than momentum-driven. Quality large-caps like
TCS, Infosys offer better risk-reward vs mid-tier players facing margin pressures.

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7. What to Watch Today

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Key Events:

• 9:15 AM: Market opening – watch IT, pharma sector continuation

• 11:00 AM: Protean eGov results focus after ₹1,160 crore UIDAI order win[14]

• Post-Market: Global commodity price movements ahead of Fed minutes

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Data Watch:

• FII/DII flow data for August 25 session

• Sectoral rotation patterns in midcap space

• Currency movement vs Asian peers

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8. Quote of the Day

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"The market rewards patience more than prediction. Focus on businesses, not price movements."

– Warren Buffett | Relevant as markets show stock-specific performance despite flat broader indices

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Disclaimer:

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This newsletter is for educational purposes only and should not be considered as investment advice. Please consult your financial advisor before making investment decisions. Past performance does not guarantee future results. Oorjita FinAI Services does not guarantee accuracy of all data points and market predictions.

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