Why are markets rallying but tech stocks falling? 5 key factors triggering 800-point U-turn on Sensex

Indian markets staged a sharp comeback in afternoon trade with Sensex rising over 800 points and Nifty crossing 23,600. Here are the 5 major reasons behind today’s rally and why IT stocks continue to remain under pressure.

Written by Oliviya Kunjumon

Updated: May 14, 2026 12:54 IST

Stock market today with Eicher Motors Infosys Varun Beverages among top movers

Company-specific triggers drove market action as earnings, OFS and deal developments moved key stocks

Indian stock markets staged a comeback in the afternoon session today after starting on a volatile note. .

Both benchmark indices moved higher during intraday trade, with the Sensex rising over 800 points to cross the 75,300, while the Nifty climbed above 23,600, gaining nearly 250 points.

The sharp recovery came after markets struggled in the early hours of trade. The broader market turned positive in the second half of the session but information technology stocks remained under pressure.

Big selling in IT stocks

The Nifty IT index slipped more than 2.5%, making it the only major sectoral index trading in the red during intraday trade.

Selling pressure eases ahead of BSE weekly expiry

One of the biggest reasons behind today’s intraday recovery was the easing of selling pressure after several weak sessions in the market.

According to market veteran Deepak Jasani, the market rebound was not necessarily driven by aggressive fresh buying, but more because the heavy selling seen in recent sessions started slowing down.

“Its BSE weekly expiry day. What we are seeing in the market is slowing down of selling pressure rather than aggressive buying. However, the tech stocks continue to see selling pressure as investor apprehension around the AI disruption and long-term growth visibility continues to gain momentum. The funds from the tech sector are being deployed elsewhere,” said Deepak Jasani.

Investors return to beaten-down sectors

Another key trigger behind the market recovery was value buying in sectors that had seen sharp corrections over the last few trading sessions.

Indian markets had already seen significant weakness recently, with the Sensex and Nifty falling nearly 4% over the previous four sessions. Concerns around rising crude oil prices and Prime Minister Narendra Modi’s call for austerity had weighed on investor sentiment earlier.

After the recent market fall, investors may have started buying stocks that had corrected sharply and were trading at lower prices.

Pharma, banking and metals lead the rally

The afternoon rally was largely supported by broad-based buying across several key sectors of the market.

Sectors such as pharmaceutical, healthcare, banking, metals, chemicals, energy, Fast-Moving Consumer Goods and cement stocks gained over 1% in the intraday trading session today.

Why technology stocks are still falling

Even though the broader market recovered sharply, information technology stocks continued to remain under pressure in intraday trading.

Market participants remain concerned about the long-term impact of Artificial Intelligence on traditional technology outsourcing models.

According to analysts, concerns around slower global technology spending, weak earnings visibility and Artificial Intelligence-led disruption continue to weigh on investor sentiment in the sector.

Rupee slides to fresh lows

The Rupee rupeeis now nearing dangerously close to the 96/$ levels. It slipped to the lowest point for 2026 in early trade today on the back of continuous FII outflows and elevated crude prices.