Morning Edition · Wednesday, July 29, 2026Published at 1:17 AM EDT · New York
India's Larsen & Toubro Lifts Profit 14 Percent as Domestic Demand Cushions Global Tech Selloff
The engineering group's shares rose 4 percent on stronger earnings while Indian indices climbed against the global chip-stock decline.
Indian equities separated from the global selloff in technology stocks, supported by a series of solid domestic corporate results. Larsen & Toubro, the country's largest engineering and construction group, reported a 14 percent rise in quarterly net profit to 4,123 crore rupees and a 7 percent increase in revenue to 67,942 crore rupees, with international operations now contributing just over half of the total. The shares rose about 4 percent, and several brokerages, including Goldman Sachs, kept positive ratings, the Economic Times reported.
Smaller companies contributed to the gains. Inox Wind rose about 3 percent after securing a repeat 200-megawatt turnkey order worth 1,600 crore rupees from NLC India, lifting its order book to 4.7 gigawatts, according to the Economic Times. The Sensex rose nearly 1 percent and the Nifty approached 24,200, aided by a firmer rupee and continued foreign inflows.
The divergence points to a market driven more by domestic order books, infrastructure spending and financial companies than by the concentrated artificial-intelligence (AI) linked stocks that set the direction in Seoul and on the Nasdaq.
Part of a tracked trend
India's Domestic Market Absorbs Shocks
India's domestic-demand-led equity market and financial-sector earnings repeatedly cushion it from external oil and rate shocks, drawing flows seeking growth insulated from global stress.
What this means
Indian equities and the domestically focused industrial and infrastructure sectors gain when global selling is concentrated in AI chips, because their earnings depend on public capital spending, construction and financials rather than on semiconductor demand. The channel is composition. An index weighted toward banks, engineering and consumer names has little direct exposure to the memory-chip cycle, so it can rise on local earnings even as technology-heavy indices fall. The offset is foreign flows, which can reverse quickly if a firmer dollar pulls capital back toward United States assets.
What to watch
- Foreign institutional investor flows into Indian equities, because a firmer dollar after the Federal Reserve decision could reverse the inflows now supporting the market.
- The breadth of India's earnings season beyond a few large caps, since durable gains require profit growth across banks and consumer sectors, not just marquee names.
Observations to monitor, not financial advice.
Synthesized from: Economic Times · Economic Times
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