Indian benchmark stock indices, Sensex and Nifty, witnessed a sharp decline in early trade, breaking a five-day winning streak, as major IT stocks plummeted following Accenture’s revised revenue growth guidance.
Photograph: Danish Siddiqui/Reuters
Sensex and Nifty50 Performance: Key Market Highlights Today
- The Sensex plunged 786.58 points and the Nifty declined 210.95 points in early trade, ending a five-day rally.
- Major Indian IT firms like Infosys, TCS, Tech Mahindra, and HCL Tech saw significant drops of 4-8 per cent.
- The sell-off was triggered by Accenture’s cut in revenue growth guidance, impacting Indian IT majors’ ADRs.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,025.20 crore on Thursday.
- Despite the current dip, US markets ended higher, and some Asian markets showed marginal gains.
Stock market benchmark indices Sensex and Nifty tumbled in early trade on Friday after a five-day rally, dragged by heavy selling in IT firms following revenue growth guidance cut by Accenture.
The 30-share BSE Sensex tanked 786.58 points to 76,624.90 in early trade. The 50-share NSE Nifty declined 210.95 points to 23,959.80.
How IT Majors Impacted Indian Equities
From the 30-Sensex firms, Infosys dived over 8 per cent, Tata Consultancy Services tumbled 6 per cent, Tech Mahindra traded 5 per cent lower and HCL Tech declined 4.9 per cent. HDFC Bank and Tata Steel were also among the laggards.
NTPC, Bharti Airtel, Trent and Power Grid were among the winners.
The BSE IT index dropped 5.38 per cent.
“Guidance cut by Accenture has triggered sell-off in Indian IT majors’ ADRs (American Depositary Receipts),” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Global Market Context and FII Activity
Brent crude, the global oil benchmark, traded 0.93 per cent lower at USD 79.11 per barrel.
In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index quoted marginally higher.
US markets ended higher on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,025.20 crore on Thursday, according to exchange data.
Benchmark equity indices ended in positive territory on Thursday, rallying for the fifth straight session.
