Indian benchmark equity indices ended sharply lower on Friday despite supportive global cues from easing crude oil prices and reduced geopolitical tensions. The BSE Sensex plunged more than 750 points during the session before settling 729 points lower at 76,688.63, while the NSE Nifty50 declined 198 points to close at 23,970.60, slipping below the psychologically important 24,000 mark.
The biggest pressure on the market came from the IT sector. Investors turned cautious after global technology services company Accenture issued a weaker-than-expected business outlook, raising concerns about future demand for software and technology services. Shares of major Indian IT firms, including Infosys, TCS and HCLTech, emerged among the top losers of the day as investors rushed to cut exposure to the sector.
Other notable laggards included Tech Mahindra, Wipro and HDFC Bank, which also witnessed selling pressure. The weakness in technology stocks dragged the Nifty IT index to its lowest level in nearly three years.
Market experts said worries over reduced technology spending by overseas clients prompted investors to book profits in IT stocks after recent gains. The weakness in the sector overshadowed support from favourable global developments.
Meanwhile, crude oil prices continued to decline amid reports of a possible peace agreement between the United States and Iran and the resumption of shipping activity through the Strait of Hormuz. Lower oil prices are generally beneficial for India, one of the world’s largest crude importers, as they help ease inflationary pressures and reduce import costs.
Despite the broader weakness, a few heavyweight stocks helped limit losses. Reliance Industries and Bharti Airtel were among the top gainers, supported by positive investor sentiment and expectations of business growth. Reliance attracted buying interest ahead of its annual general meeting, where investors are expecting key announcements related to telecom, artificial intelligence and data centre businesses.
Also Read: India secures key gains in landmark UK trade deal