Sensex falls over 750 points, Nifty slips below 24,000 as IT stocks drag despite positive global market cues

Indian benchmark equity indices opened sharply lower on Friday, weighed down by anticipated selling in information technology stocks even as global markets remained broadly supportive. 

At 9:25 am, the BSE Sensex was down 716.48 points, or 0.93%, at 76,693.49 while the NSE Nifty50 slipped 210.65 points, or 0.87%, to 23,957.35. 

IT stocks drag

On the 30-share Sensex platform, NTPC, Sun Pharma, Bharti Airtel are among the top gainers while Infosys, TCS, TechM, and HCL are the prime losers. 

Market sentiment was largely impacted by concerns over the outlook for IT companies following softer revenue guidance issued by global consulting and technology services major Accenture, raising fresh questions over near-term growth prospects for the sector. 

The cautious outlook triggered pressure on Indian IT counters, with the American Depository Receipts (ADRs) of Infosys and Wipro falling 9.7% and 3.63%, respectively, on Wall Street overnight, signalling weak sentiment ahead of domestic trading. 

Asian markets at a glance 

Despite the weakness in Indian equities, global markets remained firm. In the Asia-Pacific region, South Korea’s Kospi advanced 2.7%, while Japan’s Nikkei 225 gained 0.58%, with both indices extending gains after touching fresh highs. 

US markets also ended higher overnight. The Dow Jones Industrial Average rose 0.14%, while the S&P 500 added 1.08%. The tech-heavy Nasdaq Composite outperformed, closing 1.91% higher. 

US equities charged back forcefully on Thursday, wiping away the vast majority of the steep losses triggered by Wednesday’s late-hour Federal Reserve scare. Investors swiftly digested the hawkish projections under Chairman Kevin Warsh, shifting their focus squarely onto massive corporate developments, according to Bajaj Broking.

Crude oil prices continued to ease after the US and Iran signed a peace agreement, resulting in the lifting of the blockade at the Strait of Hormuz and easing concerns around supply disruptions. Brent crude futures for June declined 0.41% to trade at $79.52 per barrel on the Intercontinental Exchange. 

Precious metals also remained under pressure, with gold futures declining 1.01% and silver futures falling 1.89% in early trade. 

Meanwhile, the rupee gained 10 paise to 94.30 against US dollar in early trade on Friday. Foreign institutional investors offloaded equities worth ₹1,025.20 crore on a net basis on Thursday, according to exchange data.