IT Rally Fails To Lift Dalal Street As Private Banking Weakness Keeps Benchmarks In Check

Mumbai, May 19: IT stocks tried to pull Dalal Street higher on Tuesday, but weakness in private banks and select heavyweight counters kept benchmark indices under pressure as investors remained cautious amid elevated crude oil prices and uncertainty surrounding the US-Iran conflict. While software exporters rallied on a weaker rupee and bargain buying, banking shares dragged amid concerns that rising oil prices and inflationary pressures could weigh on domestic growth. Oil marketing companies, however, gained after the government raised petrol and diesel prices for the second time within a week.

IT Extends Rally

Technology stocks emerged as the biggest support for the market, with the Nifty IT index jumping 3.2% to extend its three-session rally to 7.1%.

Heavyweights such as Infosys, Tata Consultancy Services, Tech Mahindra and HCL Technologies advanced sharply as investors returned to beaten-down software exporters after recent steep declines. Infosys rose 4.5% to Rs 1,194.00, TCS increased 2% to Rs 2,330, and Tech Mahindra jumped 2.6% to Rs 1,467. The rebound came on the back of bargain hunting and continued weakness in the rupee, which hit a record low against the US dollar.

A stronger dollar typically benefits Indian IT companies as a majority of their revenue is derived from US clients and billed in dollars. Investor sentiment towards the sector also improved ahead of the release of minutes from the US Federal Reserve’s latest policy meeting.

Despite the recent recovery, the Nifty IT index remains down 22.6% so far in 2026, making it the worst-performing major sector this year amid concerns surrounding AI-led disruption and slowing global technology spending.

Oil & Gas Weakness Countered By OMCs

Oil marketing companies offset the weakness seen on the oil and gas index amid elevated oil prices by rallying after the Centre raised petrol and diesel prices by around ₹1 per litre in the second hike within a week.

Shares of Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation gained as investors welcomed the move, which is expected to help state-run fuel retailers offset losses caused by elevated crude oil prices. Indian Oil Corporation rose 2.5% to Rs 135 while BPCL increased 2.17% to Rs 286.90 and HPCL jumped 3.44% to Rs 371.25.

Brent crude remained near $110 per barrel despite easing slightly after US President Donald Trump said he had paused a planned strike on Iran following a peace proposal from Tehran.

Private Banks Weigh On Benchmarks

However, gains in IT and OMC stocks were countered by weakness in financial counters, particularly private sector banks.

The Nifty Private Bank index fell 0.7%, dragged lower by HDFC Bank and ICICI Bank. Investors remained cautious on lenders amid concerns that persistently high oil prices and a weakening rupee could keep inflation elevated and impact credit demand. HDFC Bank declined 0.76% to Rs 762.80 while ICICI fell 0.69% to Rs 1,242.50.

Source: NSE