News Overview

Indian IT stocks witnessed heavy selling pressure after OpenAI unveiled its new AI-focused Deployment Company, raising fears that enterprises may increasingly bypass traditional outsourcing firms. Infosys and TCS plunged to fresh 52-week lows amid concerns over slowing global tech spending, weak discretionary demand, delayed deal closures, and growing AI disruption risks.

V-Marc India shares surged after the company approved a 5:1 bonus issue and reported stellar FY26 results. Revenue nearly doubled to ₹1,797 crore, while net profit jumped 177% YoY. The company also unveiled aggressive expansion plans with ₹500 crore capex through FY30.

India’s CPI inflation increased to 3.48% in April 2026, marking the fourth consecutive monthly rise. Food inflation climbed to 4.20%, while gold, silver, transport, and service costs continued to rise, signalling growing inflationary pressure across the economy.

Indian benchmark indices ended sharply lower on May 12, 2026, with Sensex falling 1,456 points and Nifty closing at 23,379. Rising crude oil prices, persistent US-Iran tensions, rupee weakness, and heavy selling in IT stocks after OpenAI’s new AI deployment business announcement triggered broad-based market weakness. Realty, IT, defence, and financial stocks led the decline, while ONGC gained on government royalty cuts for crude and natural gas production.

At the CII Annual Business Summit 2026, Uday Kotak cautioned that India has not yet fully felt the impact of global oil price shocks. He warned that rising geopolitical tensions could push crude prices higher, fueling inflation, weakening the rupee, and increasing pressure on household budgets and the broader economy.

The global energy market is entering a more dangerous phase as the oil crisis evolves into a physical fuel supply crunch. Saudi Aramco has warned that gasoline and jet fuel inventories could reach critically low levels if disruptions in the Strait of Hormuz continue, raising risks of inflation, transportation disruption, and economic stress for oil-importing nations including India.

Jyothy Labs shares declined sharply after news that its Pril and Fa licensing agreements with Henkel will end in 2026, raising concerns about revenue disruption and growth slowdown. The company is now shifting focus toward owned brands like Exo and Margo, with investors closely watching how well it navigates the transition period.

Indian IT stocks witnessed selling pressure after OpenAI’s new deployment-focused initiative raised fears that AI companies may increasingly move into enterprise consulting, workflow redesign, and transformation services — areas traditionally dominated by firms like TCS, Infosys, and HCLTech. Investors worry that generative AI could disrupt the labor-intensive outsourcing model by reducing project sizes, compressing billing rates, and automating software development workflows, forcing the Indian IT industry into a major structural transition.

Groww shares have corrected sharply following a massive block deal and post-IPO lock-in expiry fears. However, the decline appears largely technical, while the company continues to report strong revenue growth, rising market share, and a significant profitability turnaround.

Vodafone Idea shares dropped more than 3% after gaining nearly 9% from intraday lows, as lack of clarity on restructuring and funding plans triggered profit booking and renewed concerns over the company’s financial stability and 5G competitiveness.