EV Stocks Surge Amid New Delhi Policy, IT Stocks Weigh Down Indian Markets

Indian equity markets closed lower due to a decline in IT stocks, while EV stocks like Ola Electric and Ather Energy surged following Delhi's new EV policy announcement. The Nifty fell below 24,000, but mid-cap and small-cap stocks showed resilience, with significant gains in healthcare and chemicals sectors.

The Indian equity markets experienced a downturn on Tuesday, dragged down primarily by IT stocks, despite a rally in electric vehicle stocks following the unveiling of Delhi's new EV policy. The Nifty index closed at 23,865.75, dropping 80.50 points, as it slipped below a crucial psychological level.

In a contrasting trend, the broader market demonstrated resilience, with the Nifty Smallcap 100 rising by 1.02 per cent, and the Midcap 100 increasing by 0.37 per cent. Notably, shares of EV companies such as Ola Electric and Ather Energy surged due to positive sentiment stemming from the policy aimed at promoting cleaner air and accelerating EV adoption.

However, traditional automobile stocks encountered pressure, with declines seen in Hero MotoCorp and Eicher Motors. On a sectoral basis, the Nifty Midsmall Healthcare index led the gains. Meanwhile, analysts noted fluctuations in the rupee amidst global market trends, with future support and resistance levels identified for the USDINR.