Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite, with markets worrying that Indian IT firms dependent on the labour arbitrage model may face tougher competitive pressure than their Nasdaq peers.
Photograph: Arko Datta/Reuters
Key Points
- NSE Nifty plunged 336.10 points
- Among Sensex stocks Bajaj Finance and SBI were the only gainers
- Metal stocks saw profit-booking amid a stronger dollar index
Benchmark equity indices Sensex and Nifty tumbled more than 1 per cent on Friday due to across-the-board selloff, especially in metal, IT and commodity stocks, tracking sluggish global markets.
In a volatile session, the 30-share BSE Sensex tumbled 1,048.16 points, or 1.25 per cent, to close at 82,626.76.
During the day, the benchmark tanked 1,140.37 points, or 1.36 per cent, to hit an intraday low of 82,534.55.
The 50-share NSE Nifty plunged 336.10 points, or 1.30 per cent, to settle at 25,471.10.
In the intraday trade, it slumped 362.9 points, or 1.4 per cent, to hit a low of 25,444.30.
Gainers and losers
Among the Sensex constituents, Hindustan Unilever, Eternal, Titan, Tata Steel, Adani Ports, Tata Consultancy Services, PowerGrid, Reliance Industries, Bharat Electronics Ltd, Asian Paints, Mahindra & Mahindra, HDFC Bank and HCL Technologies were the major laggards.
On the other hand, Bajaj Finance and State Bank of India were the only gainers.
What analysts say
“Domestic equities ended lower following a highly volatile session, weighed down by weak global cues ahead of the upcoming US inflation data.
“Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite, with markets worrying that Indian IT firms dependent on the labour arbitrage model may face tougher competitive pressure than their Nasdaq peers,” Vinod Nair, head of research, Geojit Investments Limited, said.
This cautious tone extended across the broader market, pulling all major indices into negative territory, with most sectors closing in the red, he added.
“Metal stocks saw profit-booking amid a stronger dollar index, as reports of Russia’s return to the US-dollar settlement system heightened expectations of potential sanctions relief and raised concerns over weaker realisations for metal companies,” Nair said.
How Asian markets fared
In Asian markets, Hong Kong’s Hang Seng benchmark, Shanghai’s SSE Composite index, Japan’s Nikkei 225 index and South Korea’s Kospi ended in the negative territory.
Meanwhile, foreign institutional investors bought equities worth Rs 108.42 crore on Thursday, while domestic institutional investors were also net buyers of stocks worth Rs 276.85 crore, according to exchange data.
Brent crude, the global oil benchmark, rose 0.32 per cent to $67.81 per barrel.
