Indian benchmark equity indices ended sharply lower on Friday, snapping a five-session winning streak, as heavy selling in information technology (IT) stocks weighed on market sentiment.
The BSE Sensex fell 607.08 points, or 0.78 per cent, to close at 76,802.90, while the NSE Nifty 50 declined 154.90 points, or 0.64 per cent, to settle at 24,013.10.
The IT sector emerged as the biggest laggard, with the Nifty IT index falling more than 3 per cent. Realty and consumer durables stocks also declined by over 1 per cent each.
Among Sensex constituents, Infosys led the losses, plunging more than 6 per cent. Other major losers included TCS, HCL Technologies, Tech Mahindra and HDFC Bank. On the gaining side, Eternal, Bharti Airtel, Power Grid, Trent, NTPC, ITC and Larsen & Toubro ended higher.
Market analyst Vipin Dixena said the decline appeared to be a sector-specific correction rather than a broader market downturn.
“Today’s sharp downturn feels like a classic sector-specific correction rather than a broader market breakdown. The IT selloff appears to be an overblown reaction to Accenture’s guidance cut, creating panic that does not align with the underlying fundamentals,” he said.
Dixena noted that broader market sentiment remained resilient, with small-cap stocks outperforming.
“Nifty Smallcap 100 and Nifty Smallcap 250 gained between 0.25 per cent and 0.33 per cent, indicating that retail investors are not losing confidence but are rotating from large-cap IT stocks into relatively defensive sectors such as power, telecom and pharmaceuticals,” he added.
From a technical perspective, Dixena said the Nifty’s ability to hold above the 24,000 mark suggested that the broader uptrend remained intact.
“Nifty continues to trade above 24,000 and closed above its opening level. The broader uptrend structure remains intact, with the RSI at 67 and MACD staying positive,” he said.
Abhishek Kumar, SEBI-registered investment adviser and founder of SahajMoney, said Indian equities remained under pressure throughout the session as weakness in IT stocks intensified.
“The Nifty 50 closed near the psychological 24,000 level, while the Sensex ended around 76,800. The market validated the morning’s gap-down signal as IT sector weakness deepened during the day,” Kumar said.
He noted that news of a US-Iran peace deal remained a key macroeconomic factor, helping cool Brent crude prices to around USD 79 per barrel and providing support to oil-sensitive sectors.
However, Kumar said the positive impact was outweighed by the US Federal Reserve’s hawkish stance and a sharp selloff in IT stocks following global guidance cuts.
“While the morning GIFT Nifty indicated a cautious start, the final close confirmed underlying market caution as the Nifty briefly slipped below the 24,000 mark during trading,” he added.
(With ANI inputs)
