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Nifty Trades Flat Amid RBI Inflation Remarks; Wipro Shares Under Pressure Post Q2 Results

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The Indian equity markets are trading largely flat at midday, with the Nifty 50 hovering around its previous close, as investors digest a cautious statement from an RBI Deputy Governor regarding persistent inflation pressures. Meanwhile, IT major Wipro's shares are witnessing selling pressure after the company reported Q2 FY27 results that beat profit estimates but offered a subdued revenue guidance for the coming quarter, impacting broader IT sector sentiment. The market remains watchful of global cues and domestic liquidity conditions in the current trading session.

Key highlights

• Nifty 50: Trading marginally lower by 0.15% at 23,850 points, consolidating after early volatility.
• Wipro Ltd: Stock down over 3% after Q2 FY27 results, despite profit beat, due to weak Q3 guidance.
• RBI Deputy Governor: Signaled continued vigilance on inflation, hinting at a prolonged hawkish stance if price pressures persist.
• Advanced Electronics PLI: Government announces new Production-Linked Incentive scheme, boosting select manufacturing stocks.
• FII Activity: Foreign Institutional Investors remained net sellers in the previous session, contributing to cautious market sentiment.

RBI Deputy Governor Signals Continued Vigilance on Inflation, Impacts Bond Market

A statement from a Reserve Bank of India (RBI) Deputy Governor today indicated that the central bank remains highly vigilant on the inflation front, suggesting that price pressures might be more persistent than previously anticipated. Speaking at a financial conclave earlier this morning, the Deputy Governor highlighted global commodity price volatility and domestic supply-side constraints as key risks to the inflation outlook. This commentary has led to a slight uptick in benchmark government bond yields, as market participants interpret the remarks as a signal for a potentially prolonged period of tight monetary policy or at least a delay in any rate cut expectations.

The Deputy Governor emphasized that while headline inflation has shown some moderation, core inflation remains sticky, necessitating a cautious approach from the monetary policy committee. This stance aligns with the RBI's primary mandate of price stability. Banking and financial stocks reacted with some caution, as higher interest rates or a prolonged tight liquidity environment could impact credit growth and asset quality. Analysts suggest that the RBI's focus will remain firmly on bringing inflation within its target band sustainably, and any premature easing of policy could be detrimental. Investors will now closely watch upcoming inflation data and future MPC minutes for further clarity on the central bank's forward guidance. The statement underscores the challenges faced by policymakers in balancing growth imperatives with inflation control in the current economic climate.

Wipro Shares Decline Post Q2 FY27 Results Amid Cautious Guidance

IT services giant Wipro Ltd. saw its shares trade lower by over 3% on the NSE today, following the announcement of its second-quarter results for the financial year 2026-27. While the company reported a consolidated net profit of ₹3,250 crore, a 5% year-on-year increase that surpassed analyst expectations, its revenue guidance for the third quarter disappointed investors. Wipro projected a revenue growth in constant currency terms of -1.0% to +1.0% for Q3 FY27, indicating continued softness in client spending and a challenging demand environment.

The company's Q2 revenue stood at ₹23,500 crore, up 4% year-on-year, driven by modest growth in its key segments. However, the cautious outlook for the December quarter suggests that the broader IT sector is still grappling with macroeconomic headwinds, delayed decision-making by clients, and project deferrals. Wipro's management acknowledged the challenging environment but expressed optimism about long-term deal pipeline and strategic investments in AI and digital transformation. Despite the profit beat, the market's focus remained on the weak guidance, leading to a negative sentiment not just for Wipro but also for some of its peers in the IT services space. Analysts will be scrutinizing management commentary during the earnings call for more insights into client spending patterns and the company's strategy to navigate the current demand slowdown.

More stocks and market news

Government Unveils New PLI Scheme for Advanced Electronics Manufacturing

The Indian government today announced a new Production-Linked Incentive (PLI) scheme specifically targeting advanced electronics manufacturing, aiming to boost domestic production and attract global players. The scheme, with an outlay of ₹12,000 crore over five years, focuses on components like semiconductors, advanced sensors, and display panels. This move is expected to provide a significant impetus to companies involved in high-tech electronics manufacturing and assembly, with several domestic players seeing an uptick in their stock prices following the announcement. The initiative is part of India's broader strategy to become a global hub for electronics manufacturing and reduce import dependence.

Nifty, Sensex Trade Range-Bound; FII Selling Weighs on Sentiment

The broader Indian equity benchmarks, Nifty 50 and Sensex, are trading in a narrow range around midday, reflecting a cautious mood among investors. The Nifty 50 is hovering near the 23,850 mark, while the Sensex is around 79,200. This subdued trading comes after Foreign Institutional Investors (FIIs) remained net sellers in the previous trading session, offloading equities worth approximately ₹1,800 crore. Domestic Institutional Investors (DIIs) provided some support, but the persistent FII outflows continue to be a drag on market sentiment, especially in large-cap stocks. Sectoral performance is mixed, with Pharma and FMCG showing some resilience, while IT and select banking stocks face pressure.

Market context

As of 12:00 PM IST, the Nifty 50 is trading at 23,850.20, down 0.15%, while the BSE Sensex is at 79,205.10, down 0.12%. The Nifty Bank index is marginally lower by 0.20% at 54,580. India VIX, the volatility gauge, is up slightly by 0.8% at 12.85, indicating mild investor apprehension. Globally, Asian markets are mixed, with Japan's Nikkei 225 up and China's Shanghai Composite down, while US stock futures are trading flat. Brent crude oil is trading around $87.50 per barrel, and the Indian Rupee is stable against the US Dollar at 83.35.

Why these stories matter

The RBI Deputy Governor's remarks underscore the ongoing challenge of inflation, which directly impacts the cost of capital and corporate profitability, influencing investor sentiment across all sectors. Wipro's cautious guidance highlights the demand slowdown in the crucial IT sector, a significant contributor to India's GDP and exports, suggesting potential headwinds for earnings growth in the near term. The new PLI scheme for advanced electronics signals government commitment to manufacturing, creating potential growth pockets and investment opportunities in specific industrial segments. Overall, these developments reflect a market grappling with macro uncertainties, sector-specific challenges, and targeted government support.

What to watch next

• RBI MPC Minutes: Investors will keenly await the minutes of the latest Monetary Policy Committee meeting for further insights into the central bank's stance.
• Global Inflation Data: Key inflation releases from major economies will influence global central bank actions and commodity prices.
• IT Sector Deal Wins: Any significant deal announcements from IT companies could signal a potential turnaround in client spending.
• Government Policy Updates: Further details or implementation timelines for the new PLI scheme will be crucial for related industries.

Sources

• The Economic Times: RBI Deputy Governor's speech on inflation
• Business Standard: RBI's inflation outlook and bond market reaction
• Moneycontrol: Wipro Q2 FY27 Results and Guidance
• NSE India: Wipro Ltd. Corporate Announcements
• Press Information Bureau (PIB): Government announces new PLI scheme

FAQ

1. What is impacting the Indian stock market today?

The Indian stock market is being influenced by cautious remarks from an RBI Deputy Governor on persistent inflation, leading to concerns about monetary policy. Additionally, weak guidance from IT major Wipro after its Q2 results is weighing on the IT sector. FII selling from the previous session also contributes to the subdued sentiment.

2. Why are Wipro shares falling today?

Wipro shares are falling today despite beating profit estimates for Q2 FY27 because the company provided a cautious revenue guidance for the third quarter (Q3 FY27). This indicates a challenging demand environment and continued softness in client spending, disappointing investors.

3. What did the RBI Deputy Governor say about inflation?

An RBI Deputy Governor stated that the central bank remains highly vigilant on inflation, citing global commodity price volatility and domestic supply-side constraints as key risks. The remarks suggest that inflation might be more persistent, hinting at a prolonged period of tight monetary policy or delayed rate cuts.

4. Which sectors are in focus due to the new PLI scheme?

The new Production-Linked Incentive (PLI) scheme for advanced electronics manufacturing is putting companies involved in semiconductors, advanced sensors, and display panels in focus. This initiative aims to boost domestic production in the high-tech electronics sector.

5. How are Nifty and Sensex performing today?

Both the Nifty 50 and BSE Sensex are trading in a narrow, range-bound manner around midday, showing marginal declines. The Nifty is around 23,850, and the Sensex is near 79,200, reflecting a cautious market sentiment.

6. What is the current outlook for the IT sector?

The current outlook for the IT sector appears cautious, as evidenced by Wipro's subdued guidance. Macroeconomic headwinds, delayed client decision-making, and project deferrals continue to impact demand, suggesting a challenging near-term environment for IT services companies.

Disclaimer: This article is for educational purposes only. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.