Markets tumble: Sensex falls by 365 points, Nifty at 24,638.50; IT stocks and ITC key laggards

The Indian benchmark indices reversed gears during today’s trading session, as the Sensex fell by 365 points, at 80,352.85, while the Nifty 50 was down by 0.42%, standing at 24,630.50. 

Out of the 30 companies in the Sensex, 10 advanced, and 20 declined. In the Nifty index, out of the 50 constituents, 17 advanced, and 33 declined. 

Leading the bourses is Mahindra and Mahindra, which continues to rise; it was up by 2.25%, jumping from 1.83% recorded in the early hours. It was followed by Eicher Motors, which added 1.92%, and Eternal gained 1.82%. 

ITC, on the other hand, was the major laggard, dipping by 2.55%. Additionally, IT heavyweights further dragged the markets down. TCS was the top loser amongst the IT lot, down by 1.92%, followed by HCL Tech (-1.88%), Infosys (-1.63%), and Tech Mahindra (1.56%). 

Similarly, the Nifty IT index declined by 1.72%, with mid-cap stocks of Persistent Systems and Mphasis being key underperformers. Shares of Persistent Systems decreased significantly by 3.58%. As IT companies generate most of their revenue from the US, headwinds in the US market pressure these companies. The U.S. showcased a softened job market, which highlighted concerns about economic growth and impacted Indian IT companies. 

Nifty FMCG and Nifty Realty also fell by more than 1.5%, amidst profit booking. On the other hand, Nifty Auto provided a reprieve to the falling indices, rising by 0.96%, followed by Nifty Media, which rose by 0.13%.

Broader markets too reflected similar sentiments as the benchmark indices, with all indices trading in the red. Nifty Midcap 50 was down by 0.26%, and Nifty Smallcap by 0.24%. India VIX rose by 1.22%, to 11, reporting the market volatility.